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

Islamic Republic of Iran Shipping Lines and Others v Council

(Case T‑434/15)

(Common foreign and security policy — Restrictive measures taken against Iran with the aim of preventing nuclear proliferation — Freezing of funds — Non-contractual liability — 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 26, 27)

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), 2nd para. and 40 TEU; Arts 215, 263, 4th para. and 275 TFEU; Council Regulations No 668/2010, No 961/2011 and No 267/2012) (see paras 28-33)

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, 2nd para. TFEU) (see paras 36, 37)

4. Non-contractual liability — Conditions — Unlawfulness — Sufficiently serious breach of EU law — Insufficient reasoning in a legislative act — Not included (Arts 296 and 340, 2nd para. TFEU) (see paras 50, 76, 77)

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, 2nd para. TFEU) (see paras 51, 55-58, 61, 75, 78, 81)

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 52, 53)

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. 54)

8. Non-contractual liability — Conditions — Sufficiently serious breach of a rule of law intended to confer rights on individuals — Rule of law intended to confer rights on individuals — Meaning — Conditions concerning the adoption of restrictive measures against Iran — Included (Art. 340, 2nd para. TFEU) (see para. 60)

9. Non-contractual liability — Conditions — Unlawfulness — Sufficiently serious breach of EU law — Infringement by the Council of the obligation laid down in case-law to establish that the restrictive measures taken against natural or legal persons are well founded — None (Art. 340, 2nd para. TFEU) (see paras 62-67, 73, 80)

Re:

Application, pursuant to Articles 268 and 340 TFEU, for compensation for the damage allegedly suffered by the applicants as a result of the inclusion of their names on the lists set out in Annex II to Council Decision 2010/413/CFSP of 26 July 2010 concerning restrictive measures against Iran and repealing Common Position 2007/140/CFSP (OJ 2010 L 195, p. 39), in the Annex to Council Implementing Regulation (EU) No 668/2010 of 26 July 2010 implementing Article 7(2) of Regulation (EC) No 423/2007 concerning restrictive measures against Iran (OJ 2010 L 195, p. 25), in the Annex to Council Decision 2010/644/CFSP of 25 October 2010 amending Decision 2010/413 (OJ 2010 L 281, p. 81), in Annex VIII to Council Regulation (EU) No 961/2010 of 25 October 2010 on restrictive measures against Iran and repealing Regulation (EC) No 423/2007 (OJ 2010 L 281, p. 1) and in Annex IX to Council Regulation (EU) No 267/2012 of 23 March 2012 concerning restrictive measures against Iran and repealing Regulation No 961/2010 (OJ 2012 L 88, p. 1).

Operative part

The Court:

1. Dismisses the action;