Harms (Agriculture) [2010] EUECJ C-434/08_O (04 February 2010)

Harms (Agriculture) [2010] EUECJ C-434/08_O (04 February 2010)

A sale or any other definitive transfer of payment entitlements under Article 46(2) of Regulation (EC) No 1782/2003 must ensure that the seller or transferor may not retain, by contract or otherwise, any right to be paid sums pursuant to those entitlements, as the right to payment is inseparable from legal ownership. Arrangements allowing the seller to remain the beneficial owner or to receive payments after transfer are incompatible with the Regulation.

Citation
[2010] EUECJ C-434/08_O
Parties
Appellant/seller: Arnold and Johann Harms (partnership under German civil law); Respondent/purchaser: Freerk Heidinga
Jurisdiction
European Union
Judgment Date
04 February 2010
Procedural Posture
Reference for a Preliminary Ruling / Opinion of Advocate General
Outcome
Article 46(2) of Regulation (EC) No 1782/2003 precludes arrangements where the seller retains rights to payments after transfer; such arrangements are incompatible with the Regulation.
Legal Topics
Common Agricultural Policy, Single Payment Scheme, Transfer of Payment Entitlements, Interpretation of Regulation (ec) No 1782/2003
European Union Law Agricultural Law Common Agricultural Policy Single Payment Scheme Transfer of Payment Entitlements Interpretation of Regulation (ec) No 1782/2003

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Parties

Arnold and Johann Harms (partnership under German civil law)

Appellant/seller

Freerk Heidinga

Respondent/purchaser

Procedural Posture

Reference for a Preliminary Ruling / Opinion of Advocate General

Legal Issues

  1. 1 Whether Article 46(2) of Regulation (EC) No 1782/2003 precludes contractual arrangements that outwardly effect a complete and definitive transfer of payment entitlements but stipulate internally that the seller remains the beneficial owner and/or receives the single payments, and whether such arrangements are invalid.

Ratio Decidendi

A sale or any other definitive transfer of payment entitlements under Article 46(2) of Regulation (EC) No 1782/2003 must ensure that the seller or transferor may not retain, by contract or otherwise, any right to be paid sums pursuant to those entitlements, as the right to payment is inseparable from legal ownership. Arrangements allowing the seller to remain the beneficial owner or to receive payments after transfer are incompatible with the Regulation.

Court Disposition

Article 46(2) of Regulation (EC) No 1782/2003 precludes arrangements where the seller retains rights to payments after transfer; such arrangements are incompatible with the Regulation.