2.8 Impact of the European Court of Justice Damages against the State? In Francovich and others v Italy cases C–6/90 and C–9/90, the ECJ held that as a matter of principle, a State which breaches its Treaty obligations by failing to implement a Directive in the time allowed, may be held liable to individuals for loss suffered by them as a result. This liability is subject to three conditions: (a) the result prescribed by the Directive should entail the grant of rights to individuals, (b) it should be possible to identify the content of those rights on the basis of the provisions of the Directive, (c) there is a causal link between the State’s breach of obligation and the loss and damage suffered. It has further been stated in Brasserie du Pécher SA v Germany and R v Secretary of State for Transport ex p. Factortame (cases C–46/93 and C–48/93) that in order to give rise to a right to reparation the breach must be ‘sufficiently serious’. This will depend on the circumstances of the case. For example, where a Member State is obliged to implement a Directive within a certain time, failure to do so will be a sufficiently serious breach per se. (Dillenkofer and others v Germany cases C–178/94 etc.) In that case an argument that the time limit was too short was rejected. It was further held that successful Art.169 (now Article 226) proceedings are not a prerequisite for state liability. In other cases it will be relevant to consider factors such as the clarity and precision of the rule breached, whether infringement was intentional or inadvertent, whether the Community objected or contributed towards an omission, and so on. (See, for example, R v HM Treasury ex p BT case C–392/93 and compare R v MAFF ex p Hedley Lomas (Ireland) Ltd C–5/94.) In the English case of Bowden v South West Water and others (December 1997) a mussel fisherman claimed damages for the failure of his business as a result of water pollution. Part of his claim was on the basis of the failure of the government to bring about improvements to water quality under the bathing water and urban waste water treatment directives. It was held that these directives failed to give individual rights to shellfishermen. It was further held that any failure to designate protection areas under the Shellfish directives also constituted a breach of duty owed to the public in general and therefore failed to give rise to individual rights on the part of the plaintiff. If this judgement is an indication of the future approach of the UK courts it will be difficult to succeed in a ‘Francovich’ claim for breach of environmental directives. |