On
Background
During 2008, Transsaqui SL ("Transsaqui") purchased two
Following the Commission's decision, Transsaqui brought an action against Volvo Sweden before the Spanish commercial court (the ''Commercial Court"), arguing that because of Volvo Sweden's participation in the Cartel, Transsaqui ended up overpaying for the trucks that it purchased in 2008. Despite Volvo Sweden's registered address being located in
The Commercial Court held that that service was properly affected and following
What followed was a series of 'toing and froing' between
Aggrieved by the Commercial Court's judgement, Volvo Sweden filed an action before the
Service under Regulation No 1393/2007
In addressing the matter at hand, AG Szpunar primarily referred to the Regulation. Under the Regulation, a defendant who is domiciled in a different Member State from where the damage took place, must be served in the Member State of domicile. Applying this premise to the present case, AG Szpunar noted that Volvo Sweden was domiciled in
Based on the above, AG Szpunar held that Transsaqui should have followed the proper channels as outlined under the Regulation to be able to serve the documents correctly. AG Szpunar further argued that the right for defendants to be sued personally is an important safeguard in ensuring that they can prepare sufficiently for their defence. In view of the rules emanating from the Regulation, a subsidiary cannot be required to accept service of documents intended to institute proceedings against its parent company, which is located in another Member State.
The relationship between Regulation 1393/2007 and Article 101 TFEU
At issue was also the question as to whether the Regulation applies to claims for compensation for damages caused by an infringement of competition law. Transsaqui's views where that this should be answered in the affirmative, arguing that Article 101 TFEU and Article 47 of the Charter cannot call into question the application of the Regulation, even where liability under competition law arises.
Basing itself on Sumal (as further discussed below), Transsaqui argued that the concept of the single economic entity doctrine, as developed along the years within the realm of EU competition law should be extended to matters of a procedural nature.
In brief, and as developed through extensive
In essence, Transsaqui's argument rested on applying the single economic entity doctrine to the present case, arguing that since an applicant may seek damages owed from a parent, through its subsidiary, by way of analogy, an applicant may also validly serve that subsidiary with documents intended for its parent. In Volvo's views, the effects of Sumal should not be limited to substantive matters but should percolate into procedural issues as well.
AG Szpunar did not take kindly to Transsaqui's arguments, arguing that Article 101 TFEU and Article 47 of the Charter may not cast aside the procedure established under this Regulation. In this respect, AG Szpunar argued that in Sumal the principle of subsidiary-parent liability was seen from a substantive angle rather than a procedural one. AG Szpunar further argued that while the concept of a single undertaking as further developed in Sumal may be beneficial for victims of competition law infringements, such doctrine should not be extended to procedural aspects. In AG's Szpunar's views, doing so would only cause ambiguity as to the method of service which, is a fundamental aspect of the right of defence in civil proceedings.
In sum, AG Szpunar is of the view that claimants cannot serve proceedings on a domestic subsidiary of a defendant parent company which is domiciled in another Member State.
Concluding Remarks
Given recent case law by the
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
Mr
Ganado Advocates
VLT1455
Tel: 2123 5406
Fax: 2123 23 72
E-mail: Abuttigieg@ganado.com
URL: www.ganado.com/
© Mondaq Ltd, 2024 - Tel. +44 (0)20 8544 8300 - http://www.mondaq.com, source