Action brought on 26 April 2001 by the EFTA Surveillance Authority against the Principality of Liechtenstein (Case E-5/01)
Date: 2001-04-26
Institutions: EFTA Surveillance Authority
Subjects: Court of Justice of the European Union, EFTA, European Economic Area, Liechtenstein, interpretation of the law, right to justice

C 242/6

EN

Official Journal of the European Communities

30.8.2001

Action brought on 26 April 2001 by the EFTA Surveillance Authority against the Principality of
Liechtenstein

(Case E-5/01)

(2001/C 242/10)

An action against the Principality of Liechtenstein was brought
before the EFTA Court on 26 April 2001 by the EFTA
Surveillance Authority, represented by Peter Dyrberg, acting
as agent of
the EFTA Surveillance Authority, 74, Rue de
TrŁves, B-1040 Brussels.

The applicant claims that the Court should:

1. Declare that, by failing to adopt, within the time-limit
prescribed,
the national provisions necessary to comply
with Articles 3(1), 4, 6 and 7, read in conjunction with
Article 2, of the Act referred to in point 6 of Annex IX
to the EEA Agreement (Council Directive 87/344/EEC of 22
laws, regulations and
June 1987 on the coordination of
administrative
expenses
relating
insurance), as adapted by way of Protocol 1 to the EEA
Agreement, the Principality of Liechtenstein has failed to
fulfil
that Act and
Article 7 of the EEA Agreement.

its obligations under Article 10 of

provisions

legal

to

2. Order the Principality of Liechtenstein to pay the costs of

the proceedings.

Legal and factual background and pleas in law adduced in support:

(cid:151) Article 3(1) of the Directive states that legal expenses cover
shall be the subject of a contract separate from that drawn
up for the other classes of insurance or shall be dealt with
in a separate section of a single policy in which the nature
of the legal expenses cover and, should the Member State
the relevant premium are
so request,
specified.

the amount of

(cid:151) Article 4 of the Directive provides that any contract of legal
expenses insurance shall expressly recognise that where
recourse is had to a lawyer or other person appropriately
qualified according to national
law in order to defend,
represent or serve the intrests of the insured person in

any inquiry or proceedings, that insured person shall be
free to choose such lawyer or other person.

(cid:151) Article 6 of the Directive provides that Member States shall
adopt all appropriate measures to ensure that, without
prejudice to any right of appeal to a judicial body which
might be provided for by national
law, an arbitration or
other procedure offering comparable guarantees of objec-
tivity is provided for whereby, in the event of a difference
of opinion between a legal expenses
insurer and his
insured, a decision can be taken on the attitude to be
the
adopted in order
insurance contract must mention the right of the insured
person to have recourse to such a procedure.

the dispute. Further

to settle

interests arises or

there is disagreement over

(cid:151) Article 7 of the Directive provides that whenever a conflict
the
of
settlement of the dispute, the legal expenses insurer or,
where appropriate,
shall
claims
inform the person insured of
the right referred to in
Article 4 and the possibility of having recourse to the
procedure referred to in Article 6.

settlement office

the

(cid:151) It follows from Article 10 of the Act, as adapted by way of
Protocol 1 to the Agreement, that the time limit for Liech-
tenstein to take the necessary measures to comply with the
Act expired on 1 May 1995.

the end of

(cid:151) At the expiry of the abovementioned time limit, Liech-
tenstein had not taken the legislative measures necessary
to comply with the Act. Nor had such measures been
the time limit set by the EFTA
taken at
Surveillance Authority in its reasoned opinion,
in which
it requested Liechtenstein to take the measures necessary
therefore,
to comply with the Act. Liechtenstein has,
failed to comply with its obligations under Article 10 of
the Act and Article 7 of the EEA Agreement.