Judgment of the Court of First Instance (Second Chamber) of 11 July 2007 – Sison v Council

(Case T-47/03)

Common foreign and security policy – Restrictive measures against certain persons and entities with a view to combating terrorism – Freezing of funds – Competence of the Community – Action for annulment – Rights of the defence – Statement of reasons – Right to effective judicial protection – Action for damages

1.                     Procedure – Decision replacing the contested decision during the proceedings (see paras 37-40)

2.                     Acts of the institutions – Choice of legal basis – Regulation imposing sanctions on certain persons and entities in no way connected with a third State (Arts 60 EC, 301 EC and 308 EC; Council Regulation No 2580/2001) (see paras 98-102)

3.                     Community law – Principles – Rights of the defence – Decision to freeze funds directed against certain persons and entities suspected of terrorist activities (Art. 249 EC; Council Regulation No 2580/2001, Art. 2(3); Council Decision 2006/379) (see paras 143-146)

4.                     Community law – Principles – Rights of the defence – Resolution of the United Nations Security Council requiring restrictive measures to be taken against unspecified persons and entities suspected of terrorist activities – Implementation by the Community in the exercise of own powers (Arts 60 EC, 301 EC and 308 EC; Council Regulation No 2580/2001) (see paras 149-155)

5.                     Community law – Principles – Right to effective judicial protection (see paras 157-158)

6.                     Community law – Principles – Rights of the defence – Decision to freeze funds directed against certain persons and entities suspected of terrorist activities (Council Regulation No 2580/2001, Art. 2(3); Common Position of the Council 2001/931, Art. 1(4) and (6)) (see paras 161-169)

7.                     European Union – Common foreign and security policy – Police and judicial cooperation in criminal matters – Obligation of sincere cooperation between the Member States and the Community institutions (Art. 10 EC; Council Regulation No 2580/2001, Art. 2(3); Common Position of the Council 2001/931, Art. 1(4)) (see paras 170-172)

8.                     Community law – Principles – Rights of the defence – Decision to freeze funds directed against certain persons and entities suspected of terrorist activities (Common Position of the Council 2001/931, Art. 1(4) and (6)) (see paras 173-184)

9.                     Acts of the institutions – Statement of reasons – Obligation – Scope (Art. 253 EC; Council Regulation No 2580/2001; Common Position of the Council 2001/931, Art. 1(4) and (6)) (see paras 163, 172-173, 193-198)

10.                     European Communities – Judicial review of the legality of the acts of the institutions (Art. 230, second para., EC; Council Regulation No 2580/2001, Art. 2(3), Common Position of the Council 2001/931, Art. 1(4) and (6)) (see paras 200-202, 206)

11.                     Non-contractual liability – Conditions – Sufficiently serious breach of a rule of law intended to confer rights on individuals (Art. 288, second para., EC) (see paras 232-235)

12.                     Non-contractual liability – Conditions – Unlawfulness (Art. 288, second para., EC) (see paras 237-242)

13.                     Non-contractual liability – Conditions – Actual and certain damage – Burden of proof (see para. 250)

Re:

ACTION for, first, partial annulment of Council Decision 2002/974/EC of 12 December 2002 implementing Article 2(3) of Regulation (EC) No 2580/2001 on specific restrictive measures directed against certain persons and entities with a view to combating terrorism and repealing Decision 2002/848/EC (OJ 2002 L 337, p. 85), and, secondly, compensation for damage.

Operative part

The Court:

Annuls Council Decision 2006/379/EC of 29 May 2006 implementing Article 2(3) of Regulation (EC) No 2580/2001 on specific restrictive measures directed against certain persons and entities with a view to combating terrorism and repealing Decision 2005/930/EC in so far as it concerns the applicant;

Rejects the application for compensation;

Orders the Council to bear, in addition to its own costs, the applicant’s costs, including those incurred in the proceedings for interim measures, and also the costs of the Negotiating Panel of the National Democratic Front of the Philippines, Luis G. Jalandoni, Fidel V. Agcaoili and Maria Consuelo K. Ledesma;

Orders the Kingdom of the Netherlands and the United Kingdom of Great Britain and Northern Ireland to bear their own costs.