Judgment of the Court of First Instance (Seventh Chamber) of 15 October 2008 – Le Canne v Commission

(Case T-375/05)

Agriculture – Community financial assistance – Financial irregularity vitiating the request for payment of the balance – Decision to reduce the assistance – Expiry of the limitation period – Action for annulment and damages

1.                     Own resources of the European Communities – Regulation on the protection of the European Communities’ financial interests – Irregularity – Definition (Council Regulation No 2988/95 Art. 1(2), (4) and (5))

2.                     Own resources of the European Communities – Regulation on the protection of the European Communities’ financial interests – Prosecution of irregularities – Limitation period (Council Regulation No 2988/95, Arts 3 and 4(1))

3.                     Own resources of the European Communities – Regulation on the protection of the European Communities’ financial interests – Prosecution of irregularities – Limitation period (Council Regulation No 2988/95, Art. 3(1), para. 2; Commission Regulation No 1116/88, Art. 8)

4.                     Non-contractual liability – Conditions – Damage – Causal link – Burden of proof

Re:

APPLICATION to annul Decision C(2005) 2939 of 26 July 2005 reducing the outstanding balance of Community financial assistance granted to the application for the modernisation and renovation of its fish farm facilities and an application for compensation for harm arising from that reduction.

Operative part

The Court:

1. Annuls Commission Decision C(2005) 2939 of 26 July 2005 in so far as it reduces the Community financial assistance granted to Azienda Agricola ‘Le Canne’ Srl for project IT/0016/90/02 on account of the imputation to the eligible expenditure to that assistance of the profit made by Giradello SpA for the performance of works related to that project;

2. Dismisses the action for damages;

3. Orders the Commission to pay the costs.