Judgment of the General Court (Second Chamber) of 8 May 2019 –

Export Development Bank of Iran v Council

(Case T‑553/15)

(Non-contractual liability — Common foreign and security policy — Restrictive measures against Iran — Freezing of funds — Compensation for the damage allegedly sustained by the applicant following the inclusion and maintenance of the applicant’s name on the list of persons and entities subject to the freezing of funds and economic resources at issue — Jurisdiction of the General Court — Sufficiently serious breach of a rule of law conferring rights on individuals)

1. Judicial proceedings — Absolute bar to proceeding — To be considered of the Court's own motion — Compliance with the principle that the parties should be heard (Rules of Procedure of the General Court, Art. 129) (see paras 35, 36)

2. Common foreign and security policy — Jurisdiction of the EU judicature — Action for damages seeking compensation for the loss allegedly suffered as a result of the applicant’s erroneous inclusion on a list of persons subject to restrictive measures — Not included — Action for damages seeking compensation for the loss allegedly suffered as a result of the implementation of the restrictive measures taken against the applicant — Included (Arts 24(1), 2d para. and 40 TEU; Arts 215, 263, fourth para. and 275 TFEU; Council Regulations No 961/2010, No 1245/2011 and No 267/2012) (see paras 37-39)

3. Non-contractual liability — Conditions — Unlawfulness — Injury — Causal link — Burden of proof — One of the conditions not satisfied — Claim for compensation dismissed in its entirety (Art. 340, second para. TFEU) (see para. 41)

4. Non-contractual liability — Conditions — Unlawfulness — Sufficiently serious breach of EU law — Insufficient reasoning in a legislative act — Not included (Arts 296 and 340, second para. TFEU) (see paras 42, 50)

5. Non-contractual liability — Conditions — Sufficiently serious breach of a rule of law intended to confer rights on individuals — Reduced or non-existent discretion of the EU institution when adopting the measure — Need to take account of the factual context (Art. 340, second para. TFEU) (see paras 52, 56-58, 64, 65)

6. Non-contractual liability — Conditions — Unlawfulness — Assessment of the legality of the institutions’ conduct — Fund-freezing measures — Claim for damages by an economic operator subject to an individual restrictive measure — Criteria — Restrictive measures pursuing a legitimate aim of the common foreign and security policy (Art. 21 TEU; Art. 215(2) TFEU) (see paras 53, 54)

7. Non-contractual liability — Conditions — Sufficiently serious breach of a rule of law intended to confer rights on individuals — Rules of evidence — Annulment of one or more acts of the Council at the origin of the harm allegedly suffered by the applicant, including where annulment results from a judgment of the General Court delivered before the action for damages has been brought — Lack of irrefutable evidence (see para. 55)

Re:

Application based on Article 268 TFEU seeking compensation for the damage allegedly sustained by the applicant as a result of the restrictive measures adopted against it.

Operative part

The Court:

1. Dismisses the action;

2. Orders Export Development Bank of Iran to bear its own costs and pay those incurred by the Council of the European Union;