BUNDESGERICHTSHOF ( FEDERAL SUPREME COURT ), HAVE CONFIRMED THAT VIEW . ACCORDING TO THOSE DECISIONS , A PARTY TO A JUDICIAL SETTLEMENT MAY NOT VALIDLY INVOKE CLAUSES OF THAT SETTLEMENT WHICH CONFLICT WITH THE GERMAN LAW ON MONOPOLIES . THERE IS NO REASON WHY A SETTLEMENT WHICH OFFENDS AGAINST COMMUNITY RULES ON COMPETITION SHOULD BE VIEWED DIFFERENTLY .
86 THE SETTLEMENT AT ISSUE WAS SUBMITTED TO THE COURT , WHICH WAS ABLE TO FIND THAT IT WAS INDEED A JUDICIAL SETTLEMENT WITHIN THE MEANING OF ARTICLE 974 I ( 1 ) OF THE GERMAN CODE OF CIVIL PROCEDURE , NAMELY A SETTLEMENT CONCLUDED BEFORE A GERMAN COURT IN ORDER TO DISPOSE OF A LEGAL DISPUTE PENDING BEFORE IT .
87 WHILST IT IS TRUE , AS THE APPLICANTS MAINTAIN , THAT THE JUDICIAL SETTLEMENT IS ENFORCEABLE , IT DOES NOT HAVE THE AUTHORITY OF RES JUDICATA UNDER GERMAN LAW AND IS THERFORE NOT EFFECTIVE AGAINST OTHER COURTS , PUBLIC AUTHORITIES OR THIRD PARTIES . FURTHERMORE , AS THE COMMISSION EMPHASIZED , THE DECISIONS OF THE GERMAN COURTS ARE BASED ON THE PREMISE THAT A JUDICIAL SETTLEMENT , TO BE VALID , MUST COMPLY WITH THE REQUIREMENTS OF PUBLIC POLICY AND BONOS MORES AND THEREFORE CANNOT INFRINGE MANDATORY RULES OF COMPETITION LAW .
88 IN ADJUDGING THE APPLICANTS ' SUBMISSIONS IT IS NOT HOWEVER NECESSARY TO CONSIDER THE QUESTION WHETHER , AND IF SO TO WHAT EXTENT , A JUDICIAL SETTLEMENT REACHED BEFORE A GERMAN COURT MAY BE DECLARED VOID FOR INFRINGING COMMUNITY RULES OF COMPETITION LAW . THE CONTESTED DECISION IN FACT MERELY STATES THAT THE OBLIGATION ON LOUIS DAVID KG , ARISING OUT OF THE SETTLEMENT , NO LONGER TO SELL OR TO PLACE IN CIRCULATION IN GERMANY INRA SEEDS WITHOUT MR EISELE ' S AUTHORIZATION CONFLICTS WITH ARTICLE 85 ( 1 ) OF THE TREATY .
89 THEREFORE , THE EFFECT OF THE DECISION IS CONFINED , IN THIS RESPECT , TO A PROHIBITION RESTRAINING MR EISELE FROM RELYING ON CLAUSE 1 OF THE SETTLEMENT TO PREVENT THE SALE OR THE PLACING IN CIRCULATION OF INRA SEEDS IN GERMANY BY LOUIS DAVID KG . SUCH A PROHIBITION IS IN CONFORMITY WITH THE PRINCIPLE , RECOGNIZED IN GERMAN LAW , ACCORDING TO WHICH A JUDICIAL SETTLEMENT , WITHIN THE MEANING OF ARTICLE 794 I ( 1 ) OF THE CODE OF CIVIL PROCEDURE , CONSTITUTES BOTH AN ACT OF THE COURT TERMINATING A LEGAL DISPUTE AND A CONTRACT OF PRIVATE LAW WHICH DOES NOT ALLOW THE PARTIES TO DISREGARD MANDATORY RULES OF LAW .
90 THE FIFTH SUBMISSION MUST THEREFORE BE REJECTED .
91 IT FOLLOWS FROM THE FOREGOING THAT THE APPLICATION MUST BE ALLOWED TO THE EXTENT TO WHICH IT CHALLENGES ARTICLE 1 ( B ), RELATING TO CLAUSE 1 OF THE 1965 CONTRACT , FIRST AND SECOND INDENTS , AND THAT THE REST OF THE APPLICATION MUST BE DISMISSED .
Decision on costs
COSTS
92 UNDER ARTICLE 69 ( 3 ) OF THE RULES OF PROCEDURE THE