Judgment of the General Court (Ninth Chamber) of 11 September 2014 — Commission v ID FOS Research

(Case T‑170/08)

Arbitration clause — Contracts for financial assistance concerning projects in the field of industrial and materials technologies — Reimbursement of a part of the sums paid — Default interest

1.                     Judicial proceedings — Referral to the General Court under an arbitration clause — Contract subject to national law — Interpretation of the contract having regard to national law — Conditions — Insufficiency of the contractual clauses to resolve the dispute — Doubt as to the content or meaning of the contract (Art. 272 TFEU) (see paras 54-56)

2.                     EU budget — EU financial assistance — Obligation of the beneficiary to comply with the conditions for grant of the aid — Financing covering only expenses actually incurred — Proof of the reality of the expenses declared — None — Ineligible expenses (Art. 317 TFEU) (see para. 57)

3.                     Judicial proceedings — Referral to the General Court under an arbitration clause — Contracts for financial assistance concerning projects in the field of industrial and materials technologies — Non-compliance with obligations arising from the contracts — Right of the Commission to reimbursement of the overpaid amount plus default interest — Rate of late-payment interest claimed by the Commission lower than that calculated under the applicable rules of national law (Art. 272 TFEU) (see paras 86-91, 93-96)

Re:

ACTION brought pursuant to Article 272 TFEU seeking the reimbursement of a part of the sums paid by the Commission, together with default interest, under contract BRPR-CT-95-0099 concluded in the framework of the specific programme for research and technological development, including demonstration, in the field of industrial and materials technologies (Brite-Euram III).

Operative part

1. ID Fiber Optic Sensing Research (ID FOS Research) is ordered to reimburse the European Commission the sum of EUR 21 599.26, together with default interest:

–        at the rate of 4.75% per annum from 1 July 2002 until 31 December 2002;

–        at the rate of 6.75% per annum from 1 January 2003 until the date of the present judgment;

–        at the annual rate applied under the law of England and Wales, currently section 17 of the Judgment Courts Act, 1838, as amended, up to a maximum of 6.75% per annum, from the date of the present judgment until the debt is fully settled;

2. ID FOS Research is ordered to pay the costs.