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Remedies for infringements of EU Law legal relationships between private parties

Gebonden Engels 2019 9789013155983
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The ever-increasing impact of European Union law on private law and on legal relationships between private parties is a fact. Originally, European Union law confers rights and obligations on private parties in areas such as consumer law, labour law, competition law, intellectual property law, trade law and company law. Yet, European Union law also influences more traditional fields of private law, such as the law of obligations, including the validity, nullity and voidability of contracts, compensation for damages, and tort law.


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Preface VII
List of abbreviations XV
Member State judiciaries XVI

Chapter 1 Introduction 1
Chapter 2 Direct and indirect horizontal effect 13
2.1 Direct effect as an indistinctive term 13
2.1.1 Vertical effect 13
2.1.2 Horizontal effect 15
2.2 Direct horizontal effect 15
2.3 Indirect horizontal effect 18
2.3.1 Consistent interpretation of national law with Union law 18
2.3.2 Compatibility review of national law against Union law in proceedings between private parties 21 Substantive compatibility review 21 Contra legem interpretation and disapplying incompatible national law 23 Procedural compatibility review (Notification Directive) 24 Terminology 25

PART I Case studies 27
Introduction to Part I 29
Chapter 3 The free movement of workers and the freedom to provide services 31
3.1 Introduction 31
3.2 Case I: Angonese 34
3.2.1 Facts and legal questions 34
3.2.2 The case’s significance for Union law 36 The effect of Article 45 TFEU in horizontal legal relationships 36 Grounds of justification 38
3.2.3 A bird’s-eye view of the Italian rulings in the case 39
3.2.4 Close-up: the tools and tricks used by the national courts 42 Link with Union law: bypassing the purely internal rule 42 The direct horizontal effect results in nullità assoluta 45 Liability for a perdita di chance 50
3.2.5 Plausible solutions in Dutch law 53 The nullity of a juridical act (Article 3:40 BW) 54 Partial nullity (Article 3:41 BW) 60 The consequences of nullity 60 Liability for a tortious act (Article 6:162 BW) 61 Loss of a chance in Dutch law 68
3.3 Case II: Laval 70
3.3.1 Facts and legal questions 70
3.3.2 The case’s significance for Union law 75 Direct horizontal effect of the freedom to provide services 76 A titanic struggle: the right to collective action and the freedom to provide services 77 The substantive compatibility review of the Lex Britannia 79
3.3.3 A bird’s-eye view of the final Swedish ruling in the case 80
3.3.4 Close-up: the tools and tricks used by the national court 81 A first ground for liability: Article 56 TFEU 83 A second ground for liability: §42(1) Swedish Co-Determination Act 85 From liability to compensation for damages: how? 85 Ex tunc effect versus legal certainty 88 The aftermath 89
3.3.5 Plausible solutions in Dutch law 92 The right to collective action in the Netherlands 92 Liability for a tortious act (Article 6:162 BW) 93 Abuse of rights (Article 3:13 BW) 96

Chapter 4 General principles of Union law and the Charter of
Fundamental Rights and Principles 99
4.1 Introduction 99
4.2 Four of a kind: Mangold, Kücükdeveci, AMS and Dansk Industri 103
4.2.1 Facts, legal questions and rulings 103 The case of Mangold 103 The case of Kücükdeveci 106 The case of AMS 107 The case of Dansk Industri 109
4.2.2 The significance of these cases for Union law 112 The prohibition of age discrimination: a general principle of Union law 113 A substantive compatibility review with horizontal effect 114 National courts must disapply problematic national legislation 119 A criterion for a rule of Union law to have this effect 121
4.2.3 Post-Mangold court decisions in follow-up cases 123
4.2.4 A bird’s-eye view of the ruling of the Landesarbeitsgericht Düsseldorf in the case of Kücükdeveci 134
4.2.5 Close-up: Tools and tricks used by the Landesarbeitsgericht Düsseldorf 136 Disapplication of the provision that is contrary to Union law 136 Vertrauensschutz as an exceptional exception to the ex tunc effect 137
4.2.6 The ruling of the Cour de cassation in the case of AMS 142
4.2.7 Something rotten in the state of Denmark? The ruling of the Højesteret 143
4.2.8 Plausible routes in Dutch law 144 The Dutch Act on Equal Treatment on the basis of Age in Employment 145 Dutch courts and substantive compatibility reviews: case law on Directive 2000/78 146 Dutch courts and the scrutiny of collective agreements 150 Consequences of a substantive compatibility review for law of national origin 154 Consequences of the disapplication of a legislative provision for the horizontal legal relationship 155 Consequences of the scrutiny of collective agreements 158 The supplementary function of reasonableness and fairness 160

Chapter 5 The odd one out: directives and their position in horizontal legal relationships 163
5.1 Introduction 163
5.2 Two scenarios 165
5.2.1 Scenario 1: incorrect transposition of a directive 165 The case of Dominguez 165 The ruling of the Court of Justice in a nutshell 167 The final ruling of the Cour de cassation in broad strokes 169
5.2.2 Scenario 2: the invalidity of an already transposed directive 171 The case of Test-Achats 171 The ruling of the Court of Justice in a nutshell 173 The final ruling of the Cour Constitutionnelle in broad strokes 175 The consequences of invalidity: the European Commission vs. Kokott 176 Legislative follow-ups to Test Achats 179
5.3 The duty of consistent interpretation 181
5.3.1 Horizontal proceedings? Consistent interpretation above all 181
5.3.2 Creative interpretation is encouraged 182
5.3.3 The Working Time Directive and Dutch law 184
5.4 The nature of the parties to the legal relationship 188
5.5 When national law is substantively incompatible with a directive 190
5.6 Invalid legislation and horizontal legal relationships 192
5.6.1 Restriction of the temporal effect of the ruling 193
5.6.2 A transitional period that defers the effect of a ruling 194
5.6.3 An alternative route: disapplication? 197

PART II The proportionality of civil remedies 199
Introduction to Part II 201
Chapter 6 The right to a proportionate remedy 203
6.1 An introduction to effective judicial protection 203
6.2 Remedies must be proportionate 211
6.3 Elements of the principle of proportionality 212
6.3.1 Introduction 212
6.3.2 Determining remedies: a curtailed proportionality assessment 215
6.3.3 Legitimate aim of a civil remedy 218
6.3.4 Appropriateness of a civil remedy 220
6.3.5 Necessity of a civil remedy 222 Civil remedies are necessary 222 The civil remedies may not be excessive 224
6.3.6 Proportionality stricto sensu: a balanced remedy 225 Restoring the unequal horizontal relationship 227 When fundamental rights are at stake, remedies must respect them 229 Financial compensation must be adequate 232 Financial compensation may not be purely nominal or predetermined 233
6.4 Conclusion 235

Chapter 7 Evaluation: the proportionality of civil remedies 237
7.1 Introduction 237
7.2 (Partial) nullity of juridical acts infringing Union law with direct horizontal effect: the example of Article 45 TFEU 239
7.3 Liability for a breach of Articles 45 and 56 TFEU 244
7.3.1 An infringement of Union law as a tortious act 244
7.3.2 A Treaty provision as a ‘domestic’ ground for civil liability 247
7.4 Recoverable damages in case of liability for an infringement of Union law 249
7.4.1 Angonese: the loss of a chance as recoverable damage resulting from discrimination 249
7.4.2 Laval: Only punitive damages and no mitigation 251
7.5 Consequences of the disapplication of a legislative provision with a substantive defect in a horizontal legal relationship 254

PART III Challenges, subjects for debate, and prospects 259
Chapter 8 Remedying infringements of Union law in horizontal legal relationships: challenges, subjects for debate, and prospects 261
8.1 Introduction 261
8.2 Effectiveness versus legitimate expectations 264
8.2.1 Rulings of the Court of Justice date back in time 264
8.2.2 Restricted temporal effects and transitional periods: what is the Leitmotiv? 270
8.2.3 Effective judicial protection in principle outweighs the protection of legitimate expectations 276
8.3 Grounds of justification for infringements of Union law by private parties 282
8.3.1 Restrictions of fundamental freedoms 282 The key issue: the interests of private parties 282 Charter provisions as grounds of justification: direct horizontal effect? 286 Reframing the proportionality assessment 289 No hierarchical superiority of fundamental freedoms 292
8.3.2 Private autonomy versus fundamental freedoms 294
8.3.3 Private autonomy and other fundamental rights 296
8.4 Member State liability for legislation that is incompatible with Union law 301
8.4.1 Scenarios 1 and 2: liability for legislation with a substantive defect 303 Sufficiently serious breach of a rule that confers
a right on private parties 304 Causality and damages 307
8.4.2 Scenario 3: compensation for damages following from the disapplication of legislation with a substantive defect? 309
8.4.3 Potential solutions: the protection of legitimateexpectations or compensation for loss resulting from administrative acts? 311
8.5 Heterogeneous regimes for comparable cases 314
8.5.1 Civil remedies or State liability: what’s the difference? 314
8.5.2 The legal nature of the legal relationship and of the parties to it 317
8.6 Hybrid remedies and the roles of the actors 321
8.6.1 National procedural autonomy: a confined yet useful principle 321
8.6.2 The role of the Court of Justice 325
8.6.3 National courts as Union courts 328
8.6.4 Scholarly involvement and law in action 330

Epilogue 331
Samenvatting 335
Zusammenfassung 345
Resumen 355
Bibliography 365
Index of cases cited 409
Miscellaneous 439
Subject index 443
Curriculum vitae 455
Table of contents

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        Remedies for infringements of EU Law legal relationships between private parties