Judgment of the General Court (single judge) of 16 December 2010 – Commission v Arci Nuova associazione comitato di Cagliari and Gessa

(Case T-259/09)

Arbitration clause – Agreement entered into as part of support for European discussion projects organised by non-governmental organisations for 2003 – Action brought against the head of an association – No jurisdiction – Failure to implement the agreement – Repayment of sums advanced

1.                     Procedure – Referral to the General Court under an arbitration clause – Community judicature having no jurisdiction where the parties have not expressed the intention to confer jurisdiction upon it over a contractual dispute – Contracts concluded between the Commission and an association – Action by the Commission against the President of that association – President not bound by the contracts – Rejection – Joint and several liability of the President under the relevant national law – No effect (Arts 238 EC and 240 EC) (see paras 39-46)

2.                     Budget of the European Communities – Community financial assistance – Obligation on the beneficiary to comply with the conditions for grant of the assistance – Financing covering only expenses actually incurred – Proof of the reality of the expenses declared in the prescribed forms and time-limits – None – Ineligible expenses (Art. 274 EC) (see paras 61-67)

Re:

ACTION brought under Article 238 EC on the basis of an arbitration clause seeking an order that Arci Nuova associazione comitato di Cagliari and Alberto Gessa, in a personal capacity and jointly and severally, should repay an advance paid by the Commission under the agreement 2003‑1550/001‑001, together with late payment interest.

Operative part

The Court:

1. Dismisses the action so far as brought against Mr Alberto Gessa;

2. Orders Arci Nuova associazione comitato di Cagliari to repay to the European Commission the principal sum of EUR 15 675, together with late payment interest at the rate of 7.32% from 20 May 2007 until full payment of the debt;

3. Orders Arci Nuova associazione comitato di Cagliari to pay the costs.