Criminal proceedings against Thomas Edward Lomas and others. (Agriculture) [1992] EUECJ C-38/90 (10 March 1992)

Criminal proceedings against Thomas Edward Lomas and others. (Agriculture) [1992] EUECJ C-38/90 (10 March 1992)

Article 4(1) and (2) of Regulation No 1633/84 is invalid because it allows the clawback to differ from the premium actually granted, exceeding the Commission's powers under Article 9(3) of Regulation No 1837/80 as amended. The invalidity applies only prospectively, except for traders who initiated proceedings before the judgment. The United Kingdom remains obliged to require documentation and impose penalties for false statements.

Citation
[1992] EUECJ C-38/90
Parties
Prosecutor: The Crown; Defendants: A company established in the United Kingdom exporting sheep and sheepmeat, its executives, and an executive of another similar company
Jurisdiction
European Union
Judgment Date
10 March 1992
Procedural Posture
Preliminary Ruling (article 177 EEC Treaty) / Reference From Crown Court at Maidstone and Crown Court at Leeds
Outcome
Article 4(1) and (2) of Commission Regulation No 1633/84 declared invalid as ultra vires; temporal limitation on invalidity; UK remains obliged to require documentation and penalties.
Legal Topics
Validity of EU Regulations, Common Agricultural Policy, Market Organization in Sheepmeat and Goatmeat, Powers of the European Commission, Clawback Mechanism, Export Documentation Requirements, Penalties for False Statements
European Union Law Agricultural Law Criminal Law Validity of EU Regulations Common Agricultural Policy Market Organization in Sheepmeat and Goatmeat Powers of the European Commission Clawback Mechanism +2 more

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Parties

The Crown

Prosecutor

A company established in the United Kingdom exporting sheep and sheepmeat, its executives, and an executive of another similar company

Defendants

Procedural Posture

Preliminary Ruling (article 177 EEC Treaty) / Reference From Crown Court at Maidstone and Crown Court at Leeds

Legal Issues

  1. 1 Whether Article 4(1) and (2) of Commission Regulation No 1633/84 is ultra vires the Commission's powers under Article 9(3) of Council Regulation No 1837/80 as amended
  2. 2 Temporal effects of a declaration of invalidity of an EU regulation
  3. 3 Obligations of the United Kingdom regarding documentation and penalties for false export statements

Ratio Decidendi

Article 4(1) and (2) of Regulation No 1633/84 is invalid because it allows the clawback to differ from the premium actually granted, exceeding the Commission's powers under Article 9(3) of Regulation No 1837/80 as amended. The invalidity applies only prospectively, except for traders who initiated proceedings before the judgment. The United Kingdom remains obliged to require documentation and impose penalties for false statements.

Court Disposition

Article 4(1) and (2) of Commission Regulation No 1633/84 declared invalid as ultra vires; temporal limitation on invalidity; UK remains obliged to require documentation and penalties.

Orders

  • Article 4(1) of Regulation No 1633/84 is invalid as it exceeds the Commission's powers by not ensuring the clawback equals the premium actually granted.
  • Article 4(2) is also invalid insofar as it requires a security to be lodged to ensure the amount due under Article 4(1).