LC MANAGEMENT SERVICES (SCOTLAND) LTD (2) LC MANAGEMENT SERVICES (SCOTLAND) LTD AS ASSIGNEE OF LC SERVICES (SCOTLAND) LTD AGAINST (1) THE SCOTTISH MINISTERS, (2) HIGHLANDS AND ISLANDS ENTERPRISE [2019] ScotCS CSOH_72 (25 September 2019)

LC MANAGEMENT SERVICES (SCOTLAND) LTD (2) LC MANAGEMENT SERVICES (SCOTLAND) LTD AS ASSIGNEE OF LC SERVICES (SCOTLAND) LTD AGAINST (1) THE SCOTTISH MINISTERS, (2) HIGHLANDS AND ISLANDS ENTERPRISE [2019] ScotCS CSOH_72 (25 September 2019)

The pursuers’ pleadings do not disclose that the cumulative state aid awards exceeded the €15 million notification threshold under EU law. Capital allowances and rates relief are not available or not state aid for threshold purposes. Market failure averments do not constitute a breach of the specified EU provisions. The action is irrelevant and falls to be dismissed.

Citation
[2019] ScotCS CSOH_72
Parties
Pursuer: LC Management Services (Scotland) Limited; Pursuer: LC Management Services (Scotland) Limited as assignee of LC Services (Scotland) Limited; Defender: The Scottish Ministers; Defender: Highlands and Islands Enterprise
Jurisdiction
Scotland
Judgment Date
25 September 2019
Procedural Posture
Commercial Action / Judgment on Relevancy and Competency After Debate
Outcome
action dismissed
Legal Topics
State Aid Notification Thresholds, Regional Investment Aid, Block Exemption Regulation, Market Failure, Francovich Damages
European Union Law State Aid Law Commercial Law State Aid Notification Thresholds Regional Investment Aid Block Exemption Regulation Market Failure Francovich Damages

Case Brief

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Parties

LC Management Services (Scotland) Limited

Pursuer

LC Management Services (Scotland) Limited as assignee of LC Services (Scotland) Limited

Pursuer

The Scottish Ministers

Defender

Highlands and Islands Enterprise

Defender

Procedural Posture

Commercial Action / Judgment on Relevancy and Competency After Debate

Legal Issues

  1. 1 Whether cumulative state aid awards exceeded EU notification threshold
  2. 2 Whether capital allowances and rates relief constitute state aid for threshold calculation
  3. 3 Whether pursuers pled a relevant case on market failure

Ratio Decidendi

The pursuers’ pleadings do not disclose that the cumulative state aid awards exceeded the €15 million notification threshold under EU law. Capital allowances and rates relief are not available or not state aid for threshold purposes. Market failure averments do not constitute a breach of the specified EU provisions. The action is irrelevant and falls to be dismissed.

Court Disposition

action dismissed

Orders

  • uphold first plea in law for first defenders
  • uphold fourth plea in law for second defenders