Judgment of the General Court (Third Chamber) of 22 November 2023 –
Galván Fernández-Guillén v CRU
(Case T‑340/20) (1)
(Economic and monetary union – Banking union – Single Resolution Mechanism for credit institutions and certain investment firms (SRM) – Resolution of Banco Popular Español – Decision of the SRB refusing to grant compensation to shareholders and creditors concerned by the resolution actions – Right to property – Rights of the defence – Valuation of difference in treatment – Independence of the valuer)
1. Economic and monetary policy – Economic policy – Single resolution mechanism for credit institutions and certain investment firms – Adoption of a resolution scheme – Discretion of the Single Resolution Board (SRB) – Scope – Claim for compensation made by shareholders and creditors – Assessment of highly complex scientific and technical facts – Complex economic assessments – Broad discretion – Judicial review – Limits – Manifest error of assessment – Burden of proof
(Charter of Fundamental Rights of the European Union, Art. 41(2)(a))
(see paragraphs 35-41)
2. Fundamental rights – Charter of Fundamental Rights – Right to property – Scope – Situation where a credit institution is failing or is likely to fail – Resolution scheme involving the write-down and conversion of that institution’s capital instruments – Mechanism to ensure fair compensation for shareholders or creditors – Whether permissible
(Charter of Fundamental Rights of the European Union, Art. 17(1); European Parliament and Council Regulation No 806/2014, Art. 76(1)(e))
(see paragraphs 53, 54)
3. Fundamental rights – Charter of Fundamental Rights – Right to property – Scope – Situation where a credit institution is failing or is likely to fail – Resolution scheme involving the write-down and conversion of that institution’s capital instruments – Mechanism to ensure fair compensation for shareholders or creditors – Criteria – Burden of proof
(Charter of Fundamental Rights of the European Union, Art. 17(1); European Parliament and Council Regulation No 806/2014, Art. 76(1)(e))
(see paragraphs 56-58)
4. Economic and monetary policy – Economic policy – Single resolution mechanism for credit institutions and certain investment firms – Resolution procedure – Types of valuation for the purposes of resolution – Conditions –Valuation carried out simultaneously by the same independent person – Whether permissible
(European Parliament and Council Regulation No 806/2014, Art. 20(11) and (16))
(see paragraphs 96-98)
5. EU law – Principles – Right to effective judicial protection – Scope – Principle of equality of arms and adversarial principle – Included – Application to an administrative procedure – Not included
(Charter of Fundamental Rights of the European Union, Art. 47)
(see paragraphs 145-147)
Operative part
The Court:
2. | | Orders Mr José María Galván Fernández-Guillén to bear his own costs and pay those incurred by the Single Resolution Board (SRB); |
3. | | Orders the Kingdom of Spain to bear its own costs. |