Action brought on 3 February 2005 - Commission v Environmental Management Consultants Ltd

(Case T-46/05)

Language of the case: Greek

Parties

Applicant: Commission of the European Communities (represented by: D. Triantafillou, and by N. Koroyiannakis, lawyer,)

Defendant: Environmental Management Consultants Ltd (Nicosia, Cyprus)

Form of order sought

that the defendant be ordered to pay EUR 44 056.81, corresponding to EUR 31 965.28 capital and EUR 12 091.53 as default interest, from the date on which the debit note fell due up to 31 January 2005

that the defendant be ordered to pay interest of EUR 9.62 per day from 1 February 2005 until full satisfaction of the debt, and

that the defendant be ordered to pay the costs.

Pleas in law and main arguments

The European Community, represented by the European Commission, concluded a contract with the defendant which fell under the provisions of the special programme with third countries and international organisations. The contract concerned in particular the carrying out of a project entitled "Demonstration of closed-loop procedures in electroplating and metal chemistry" and should have been completed within 30 months of 1 November 1998. In the context of the contract, the Commission undertook to contribute financially to the proper carrying out of the project with an amount of 50% of the allowable full costs and 100% of the additional costs up to EUR 538 000.

In May 1999 the company which was coordinating the work became insolvent and suspended performance of the project which had begun on 5 February 1999. It was not possible to find another coordinator, despite the efforts of certain of the remaining members of the consortium. Subsequently the Commission decided to terminate the contract after it ascertained that it would not be possible for the remaining members of the consortium to carry out the project. The Commission notified its decision to the defendant by a letter of 16 June 2000, asking the defendant to submit a cost statement and technical report on the work carried out between February and May 1998.

The defendant submitted a cost statement for the period 1.11.1998 to 30.4.2000, but the Commission decided to proceed to assess the cost of personnel only for the period February to May 1999, which it considers constitutes the period of the actual duration of the programme, and to include the cost of equipment. On the basis of those calculations, the Commission accepted costs of EUR 23 404.72 and by this application seeks reimbursement of an amount of EUR 31 965.28, which constitutes the remainder of the advance it had paid to the defendant, together with the payment of interest owed on that amount in accordance with the relevant provisions .

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