Commission v UK (cross border group relief): UK’s 2006 rule changes are permissible
Today the CJEU, whilst not following AG Kokott’s suggestion that the “no possibilities test” is overruled, dismissed the action as the Commission was unable to prove its case. This means that the UK’s group relief legislation at issue has been found to be compliant with EU law.
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Inconsistent dispute resolution provisions and the Arbitration Act
On 22 January 2015 the Commercial Court (Popplewell J) rejected a request to overturn an arbitral tribunal's decision that it did not have jurisdiction to hear the defendant's claims. The case concerned an agreement for consultancy services which provided for ICC arbitration. Following a contractual dispute the parties entered into a further, settlement agreement conferring exclusive jurisdiction on the courts of England and Wales. A dispute also arose over the settlement agreement. The claimant brought proceedings both in the English courts and in arbitration. The defendant made counterclaims in arbitration, which were dismissed by the tribunal for lack of jurisdiction.
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Updated EU sanctions: Syria and Ivory Coast
On 27 January 2015 the EU published updates to its sanctions regimes for Syria and the Ivory Coast. In respect of Syria, the Council of the EU has re-listed Aiman Jaber, Khaled Kaddour, Mohammed Hamcho and the company Hamcho International under new statements of reasons, following annulment of the sanctions against them by the General Court in November 2014 (Cases T-653/11, T-654/11 and T-43/12). In respect of the Ivory Coast, the EU has published the Council Implementing Regulation (EU) 2015/109 and Council Implementing Decision (CFSP) 2015/118.
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Costs in the High Court: failure to submit revised budget
On 27 January 2015 the Queen's Bench Division of the High Court (Warby J) rejected the defendant's submission that the successful claimant in a preliminary issue trial should not be awarded its costs (just over £24,000) because its approved costs budget did not include the preliminary issue and because it had failed to serve a statement of costs on the defendant.
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Notice of discontinuance case in sovereign immunity context
The proceedings related to a fund worth approximately £35m and held in a National Westminster Bank account since 1948, having been frozen following the House of Lords judgment in Rahimtoola v Nizam of Hyderabad [1958] AC 379. The claimants to the fund included the states of India and Pakistan as well as certain relatives of the Nizam of Hyderabad (the princes). No agreement on the fund distribution had been reached. Pakistan subsequently served notice of discontinuance of the claim. The princes and the state of India applied to be joined as parties to the claim. The princes, India and the bank also applied to set aside the notice of discontinuance.
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New Chancery Division Practice Direction
A new Practice Direction has been issued on the production of orders for Masters and Judges in the Chancery Division which applies from 2 January 2015. The Practice Direction provides guidance on the form of orders to be produced to Masters and Judges for approval and sealing and it also provides a change of practice concerning the service of orders.
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New EU court rules of procedure: Council approval
On 23 January 2015 the EU Council published a document entitled "Rules of Procedure of the General Court of the European Union - Approval by the Council". The Council is now “invited to approve the Rules of Procedure of the General Court as set out, after legal-linguistic revision, in document 16894/14 JUR 955 COUR 58 INST 627, as an A-item in one of its next sessions”. By way of background, the new Rules can only be adopted with the support of a Qualified Majority in the Council, save for the language provisions, which require unanimous Council support. Despite the UK’s objections in December 2014, the Presidency concluded that a qualified majority existed and that the revised Rules of Procedure would be adopted by the Council in early 2015.
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New EU General Court sanctions decision: Case T‑176/12 Bank Tejarat
Bank Tejarat concerned an application to annul or declare inapplicable certain provisions of Council Decision 2012/35/CFSP, Council Implementing Regulation 54/2012, Council Regulation 267/2012, Council Implementing Regulation 709/2012 and Council Decision 2010/413/CFSP concerning restrictive measures against Iran, in so far as they applied to the said bank. The bank had been listed since 2012 on alleged grounds that it was owned by Iran, had facilitated the country's nuclear efforts, had assisted designated Iranian banks in circumventing international sanctions and had supported the activities of subsidiaries and subordinates of certain designated Iranian organisations.
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High Court guidance on the new proportionality rule in costs
In Savoye and Savoye the court had to make a summary assessment of the costs. The claimant had secured its judgment for the full sum claimed (c. £900,000). The only outstanding issue was the meaning of a term in the Housing Grants, Construction and Regeneration Act 1996. The claimant's costs bills totalled c. £200,000 for four hearings. Three of the hearings were for the application for summary judgment issued by the claimant. The time billed by the claimant's solicitors included 111 hours of partner time (c. £58,000), 223 hours of associate time (c. £83,000) and counsel's fees of £27,800. The judge found that the costs bill was disproportionate and reduced it effectively by half.
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New EU General Court sanctions decision: Case T-509/11 Makhlouf
Makhlouf concerned an application for annulment of Council Implementing Decision 2011/488/CFSP, Council Decision 2011/782/CFSP and Council Decision 2012/739/CFSP concerning restrictive measures against Syria, in so far as it applied to Mr Makhlouf. He had been on the Syrian sanctions list since 2011 due to his alleged association and his relationship with the Al-Assad and Makhlouf families.
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