RECLAIMING MOTION BY LC MANAGEMENT SERVICES (SCOTLAND) LTD AND OTHERS AGAINST HIGHLANDS AND ISLANDS ENTERPRISE [2020] ScotCS CSIH_37 (30 June 2020)

RECLAIMING MOTION BY LC MANAGEMENT SERVICES (SCOTLAND) LTD AND OTHERS AGAINST HIGHLANDS AND ISLANDS ENTERPRISE [2020] ScotCS CSIH_37 (30 June 2020)

The notification threshold under Article 6(2) GBER is €15m, calculated as 75% of the standard aid threshold (20%) applied to €100m. The awards did not exceed this threshold and were lawful. The £1.64m award complied with the scheme as HIE reasonably determined market failure. The damages claim was unspecific and causation was not established.

Citation
[2020] ScotCS CSIH_37
Parties
Pursuers and Reclaimers: LC Management Services (Scotland) Ltd & Ors; Defenders and Respondents: Highlands and Islands Enterprise
Jurisdiction
Scotland
Judgment Date
30 June 2020
Procedural Posture
Reclaiming Motion (appeal) / Inner House, Court of Session, Post Commercial Judge's Interlocutor
Outcome
Reclaiming motion refused; interlocutor of commercial judge adhered to.
Legal Topics
State Aid Notification Thresholds, Regional Investment Aid, General Block Exemption Regulation, Market Failure, Damages for Breach of EU Law
European Union Law Competition Law State Aid Law State Aid Notification Thresholds Regional Investment Aid General Block Exemption Regulation Market Failure Damages for Breach of EU Law

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Parties

LC Management Services (Scotland) Ltd & Ors

Pursuers and Reclaimers

Highlands and Islands Enterprise

Defenders and Respondents

Procedural Posture

Reclaiming Motion (appeal) / Inner House, Court of Session, Post Commercial Judge's Interlocutor

Legal Issues

  1. 1 Whether the state aid awards to Global Energy Nigg Ltd exceeded the notification threshold under Article 6(2) GBER and required notification to the European Commission
  2. 2 Whether the £1.64m award complied with the Scottish Property Support Scheme and EU law
  3. 3 Whether LCMS is entitled to damages for alleged breach of EU state aid law

Ratio Decidendi

The notification threshold under Article 6(2) GBER is €15m, calculated as 75% of the standard aid threshold (20%) applied to €100m. The awards did not exceed this threshold and were lawful. The £1.64m award complied with the scheme as HIE reasonably determined market failure. The damages claim was unspecific and causation was not established.

Court Disposition

Reclaiming motion refused; interlocutor of commercial judge adhered to.

Orders

  • Refusal of reclaiming motion
  • No reference to the CJEU under Article 267 TFEU