Judgment of the Court (Third Chamber) of 16 June 2005 in Case C-123/02: European Parliament v Royal & Sun Alliance Insurance (Arbitration clause — Insurance policies — Termination on grounds of increase of the risk insured — Abuse — Contractual liability — Damages)
Date: 2005-08-06
Institutions: Court of Justice
Subjects: European Parliament, action for annulment (EU), contractual liability, guarantee, insurance, insurance contract

6.8.2005

EN

Official Journal of the European Union

C 193/1

I

(Information)

COURT OF JUSTICE

COURT OF JUSTICE

JUDGMENT OF THE COURT

(Third Chamber)

of 16 June 2005

in Case C-123/02: European Parliament v Royal & Sun
Alliance Insurance (1)

(Arbitration clause — Insurance policies — Termination on
grounds of increase of the risk insured — Abuse — Contrac-
tual liability — Damages)

(2005/C 193/01)

(Language of the case: French)

In Case C-123/02 European Parliament (Agents: D. Peter-
sheim, O. Caisou-Rousseau and M. Ecker) v Royal & Sun Alli-
ance Insurance (Lawyers: J.-L. Fagnart and L. Vael) — action
brought on 5 April 2002 under Article 238 EC — the Court
(Third Chamber), composed of A. Rosas, President of
the
Chamber, R. Schintgen (Rapporteur) and K. Schiemann, Judges;
P. Léger, Advocate General; M. Múgica Arzamendi, Principal
Administrator, for the Registrar, gave a judgment on 16 June
2005, in which it:

1. Holds

the

that

in contracts nos.
termination of guarantees
5.013.347 and 1F516.071 notified by Royal & Sun Alliance
Insurance to the European Parliament on 9 October and 6
November 2001 constitutes a wrongful
those
contracts;

termination of

sum of EUR 205 131,75 by the percentage of premiums received
by Royal & Sun Alliance Insurance out of the total sum of those
due by the Parliament to the four co-assurors and by multiplying,
secondly, the sum of EUR 178 453,01 by the same percentage
and by the fraction 44/46, which corresponds to the proportion of
the length of time involved. The sum which that institution paid
or should have paid to Royal & Sun Alliance Insurance under the
‘labour disputes/terrorist acts’ guarantee for its assets in Belgium
and Luxembourg for the period 5 November to 31 December
2001 and in respect of all the guarantees covering its assets in
France for the period 18 November 2001 to 31 December 2001
must then be deducted from the sum of those two products;

4. Holds that the sum due as compensation for the damage which
Royal & Sun Alliance Insurance caused the European Parliament
in respect of the year 2002 is obtained by multiplying the sum of
EUR 389 291,73 by the percentage of premiums which Royal &
Sun Alliance Insurance would have received out of the total of
those which the European Parliament should have paid the four
co-assurors in respect of the guarantees for the year 2002 and by
deducting from the product thus obtained the sum which that
institution should have paid Royal & Sun Alliance Insurance in
respect of the cover for its assets in France against all material
damage for the year 2002;

5. Holds that the sums due to the European Parliament by Royal &
Sun Alliance Insurance generate interest at the statutory rate with
effect from 4 April 2002;

6. Orders Royal & Sun Alliance to pay the costs.

2. Orders Royal & Sun Alliance Insurance to compensate the damage
caused to the European Parliament as a result of the wrongful
termination of contracts nos. 5.013.347 and 1F516.071;

(1) OJ C 144, 15.06.2002.

3. Holds that the sum due as compensation for the damage which
Royal & Sun Alliance Insurance caused the European Parliament
in respect of the year 2001 is obtained by multiplying, firstly, the