Posts Tagged CJEU
Liberato: violation of lis alibi pendens rules does not justify refusal of enforcement on grounds of ordre public.
I reviewed Bot AG’s Opinion in C-386/17 Liberato here. The Court confirmed last week. Whether lis alibi pendens applies, entails applying jurisdictional rules (in essence an assessment as to whether parties are the same etc.). Except in the very rare cases of (now) Article 45 1(e) Brussels I Recast, infringement of jurisdictional rules does not feature among the reasons for refusal of recognition. Alleged infringement of the lis alibi pendens rule does not therefore qualify as ordre public.
(Handbook of) EU Private International Law, 2nd ed. 2016, Chapter 2, Heading 22.214.171.124.3, 126.96.36.199.4.
Forget what you have read. Szpunar AG does not restrict EU ‘Right to be forgotten’ /data protection laws to European territory.
I have previously reported extensively on various national and European developments re the right to have search results delisted, more popularly referred to as the ‘right to be forgotten’ (‘RTBF’ – a product of the CJEU in Google Spain) and its territorial limits. (Search string ‘Google’ or ‘rtbf’ ought to assist the reader). Szpunar AG opined mercifully succinctly last Thursday in C-505/17.
Possibly because of the English-language press release (‘Advocate General Szpunar proposes that the Court should limit the scope of the de-referencing that search engine operators are required to carry out to the EU‘) and because of the actual text of the Opinion hitherto being available in French only, general reporting has been almost unequivocally (note Michèle Finck’s 10th Tweet in an early thread on the Opinion as a cautious exception), that the AG suggests that the RTBF is limited to EU soil only.
Except, he does not.
The Conseil d’Etat has referred one or two specific Qs but also, just to be sure, has also asked the Court of Justice for general insight into how data protection laws apply to the internet.
The AG of course departs from the core objective of the data protection Directive and now the GDPR, and Google Spain, and points out that the CJEU has put the protection of the fundamental rights of the data subject at the centre. At 46 he summarises his view before justifying it:
‘in my opinion one should distinguish according to the place in which the search is carried out. Searches carried out outside the EU ought not to be made subject to delisting’. (My translation from the French).
Geo-blocking can be ordered and ensures that within the EU territory, no Google extension may be used to access the information at issue (at 64 ff) after duly having balanced the right of freedom of information against the right to be forgotten.
Turning to his arguments, the AG points out at 47 ff first of all – briefly: see e.g. Belgian case-law on Facebook for more extensive discussion – that public international law defines the borders of the EU and its Member States. The AG sees no reason (48-49) exceptionally to extend the scope of application beyond that border in the case of the Directive or the GDPR.
(51-52) Other examples of ‘extraterritoriality’ do not sway him, such as the Trademark Directive or EU competition law. He argues that in these cases the Internal Market is impacted and EU law applies to these situations ex-EU only because the Internal Market is a finite, territorial unit. The internet is not (at 53: Le marché intérieur est un territoire clairement délimité par les traités. En revanche, l’internet est, par nature, mondial et, d’une certaine manière, est présent partout. Il est donc difficile de faire des analogies et des comparaisons).
Note that references to other instances of ‘extraterritoriality’ (or not) could have been made: such as the cases surrounding animal welfare (Zuchtvieh), cosmetics, or the EU’s emissions trading scheme.
The AG also briefly discusses ‘extraterritorial’ protection of rights under the ECHR, but distinguishes the EU Charter from same. (On the topic of the ‘extraterritorial’ impact of the EU’s human rights obligations, see excellently Lorand Bartels here).
At 60-61 the AG argues (paras which have been more or less literally translated in the Press release) that if worldwide de-referencing were permitted, the EU authorities would not be able to define and determine a right to receive information, let alone balance it against the other fundamental rights to data protection and to privacy. This, the AG argues, is all the more so since ‘the right of the public to access such information’ (un tel intérêt du public à accéder à une information; this word string bizarrely translated in the press release as ‘such a publication’) will necessarily vary from one third State to another depending on its geographic location. There would be a risk, the AG suggests, that if worldwide de-referencing were possible, persons in third States would be prevented from accessing information and, in turn, that third States would prevent persons in the EU Member States from accessing information. This might in turn lead to a race to the bottom in the right to access of information.
This is an important point, because it essentially encapsulates a core argument made by Google: that particularly in the US, the constitutional right to free speech and the corollary of the freedom to receive information, gazumps a right to be forgotten – putting Google in the event of worldwide delisting orders between SCOTUS’ rock and CJEU’s hard place.
Crucially however at 62 the AG then in my view perhaps not quite torpedoes but certainly seriously softens his overall general analysis by suggesting that his views on territoriality are the default position only, which may be varied should specific instances of the balancing act of fundamental rights, so require: it’s just that the specific circumstances of the case do not.
Les enjeux en cause n’exigent donc pas que les dispositions de la directive 95/46 soient d’application au-delà du territoire de l’Union. Cela ne signifie pas pour autant que le droit de l’Union ne saurait jamais imposer à un exploitant de moteur de recherche tel que Google qu’il entreprenne des actions au niveau mondial. Je n’exclus pas qu’il puisse y avoir des situations dans lesquelles l’intérêt de l’Union exige une application des dispositions de la directive 95/46 au-delà du territoire de l’Union. Mais dans une situation telle que celle de la présente affaire, il n’y a pas de raison d’appliquer les dispositions de la directive 95/46 d’une telle manière.
The circumstances of the case do not justify worldwide blocking. Yet other circumstances might. This is a crucial section for the French data protection authority’s (CNIL) decision at issue, 2016/054 [thank you again to the Dutch Ministry of Foreign Affairs for providing the factual background to the case; also note that in the French decision Google’s name, amusingly, is anonymised] is a general CNIL instruction to Google to carry out global delisting in instances where natural persons request removal; not a case-specific one. In other words the ‘circumstances of the case’ concern a generic, not a factual balancing.
In yet other words: there could be many instances where national data protection authorities might find worldwide delisting to be the only proper means to balance the various fundamental rights at stake. The AG Opinion offers little to no support that such worldwide delisting in concrete cases were to infringe the Directive /the GDPR. Such balancing act would be akin to X v Google LLC at the Tribunal de grande instance de Paris on which I reported last week.
Note that in his Opinion of the same day in C-136/17, the AG Opines that the default response of search engine providers must be to honour requests for delisting, and to only exceptionally not do so.
Some issues for the Grand Chamber to chew on. And then some more.
(Handbook of) EU Private International Law, 2nd ed. 2016, Chapter 2, Heading 188.8.131.52, Heading 184.108.40.206.5.
SAS Institute v World Programming. Ordre Public, res judicata, fraus and (European) statute conspire against enforcement.
SAS Institute Inc v World Programming Limited  EWHC 3452 (Comm) is a rare example of refusal by an English court of enforcement of a US judgment. 20 Essex Street have excellent analysis here and I am happy generally to refer.
The outcome of English Proceedings was that WPL defeated SAS’ claims regarding software licence and copyright infringements, with an important role played by the European software Directive as applied by the CJEU in Case C-406/10 upon preliminary reference in the very case.
Meanwhile SAS had commenced concurrent proceedings in the US. WPL initially objected to the US Proceedings on forum non conveniens and other jurisdictional grounds. These objections were later withdrawn and WPL submitted to the jurisdiction of the US District Court and participated in the process before it. Judgment was awarded against it. SAS curtailed its claim of enforcement to as to increase chances of success: it only seeks to enforce the US Judgment in England insofar as it is for compensatory damages based on WPL’s fraud (an issue which was litigated in the US but not in the UK); it does not seek to enforce the breach of contract claim or that part of the US Judgment which awarded multiple damages.
At 35-36 Cockerill J summarises the law: ‘There are three strands of potential preclusion: cause of action estoppel (not live here) issue estoppel and Henderson v Henderson abuse of process. As Lord Sumption observed in Virgin Atlantic Airways Ltd v Zodiac Seats UK Ltd  UKSC 46,  AC 160 at p.180H at :
“…the policy underlying all of the…[res judicata] principles…” is “…the more general procedural rule against abusive proceedings…”.
The different doctrines therefore have different requirements, but they shoot at the same target – that of ensuring that nobody should be vexed twice in respect of one and the same cause: “nemo debet bis vexari pro una et eadem causa“: as it was put by Lord Diplock in Vervaeke v Smith  AC 145 at p.160A-B, G. A more modern version was given by Lord Bingham in Johnson v Gore Wood  2 AC 1 at p.31A-B in the context of the Henderson doctrine:
“Henderson v Henderson abuse of process, as now understood, although separate and distinct from cause of action estoppel and issue estoppel, has much in common with them. The underlying public interest is the same: that there should be finality in litigation and that a party should not be twice vexed in the same matter. This public interest is reinforced by the current emphasis on efficiency and economy in the conduct of litigation, in the interests of the parties and the public as a whole.” ‘
Issue estoppel per Dicey (referred to by Cockerill J) at paragraph 14-156 means that a “foreign judgment will not be recognised if it is inconsistent with a previous decision of a competent English court in proceedings between the same parties“. Akin therefore in residual English private international law (EU law is not engaged, the judgment having been issued ex-EU) to Brussels I Recast’s Article 45(1)c ‘s rule.
The fundamental point is that issue estoppel bars relitigation not of all issues, but only of issues determined as an essential part of the cause of action (at 40). The Henderson principle is concerned with protecting the integrity of the cause of action and issue estoppel defences and preventing them from being deliberately or inadvertently circumvented by a party which did not advance an argument in England which would otherwise have created such an estoppel (at 47).
This is the core of the abuse investigation and this formulated one can see why it is a difficult test to apply.
At 55: ‘There are two issues: was the Fraud claim “parasitic” on the breach of contract claim and the related question of whether the Fraud claim was a separate, distinct and independent cause of action. Both of these really go to the question of whether there is sufficient identity of issue.’ At 73 Cockerill J concludes that there was such abuse: ‘Ultimately, I have come to the conclusion that the existence of the terms of the contract was a fundamental building block for the Fraud Claim and that without it that claim – as it was formulated in the US – could not have been run. The essence of the case in the US Proceedings related to alleged fraudulent representations concerning its “present intention to comply with those terms”. It was fundamental to the claim that WPL “had no intention of abiding by those terms“. It was inherent in that case that those terms did exist; and yet the courts of this country had already held that those terms did not exist.’
Obiter, at 156 ff, Cockerill J adds that enforcement would also have been refused for reasons of the public policy embodied in the Software Directive. Authority in the arbitration context was referred to to pro inspiratio, including CJEU authority C-168/05 Mostaza Claro and C-126/97 Eco Swiss (at 163). At 179: ‘The fundamental problem for SAS is that the Directive plainly envisages the rendering null and void of provisions such as those on which SAS wants to rely, indeed that is explicitly the policy enunciated in the case-law and yet SAS’s fraud case is dependent upon those terms’ existence. The effect of the Directive is, as I have indicated above, to make SAS’s fraud claim (as formulated) impossible to express. It is therefore unrealistic to analyse the matter as the Directive “authorising frauds“.’ And at 184: ‘It is clear that the Software Directive gives expression to two important public policy objectives of preventing the monopolisation of ideas and promoting competition and consumer welfare.’
A very lengthy judgment which merits full reading.
Territoriality and delisting. Google score (cautious) French points ahead of Thursday’s AG Opinion in CJEU case.
X v Google LLC at the Tribunal de grande instance de Paris on 14 November 2018 is a good warm-up, forwarded to me (for which many thanks) by Jef Ausloos (I have copy for those interested). The case concerns an article in Le Monde linking a French resident, active in international hotel management, to a Moroccan enquiry into pedophilia. The court’s review of the facts suggests an unsubstantiated link between X and the case – yet the damage to claimant’s reputation evidently is done nevertheless. Claimant requests delinking not just for searches performed in France on all Google extensions, but rather for all searches performed globally.
The court first of all observes that for searches performed in France, delisting of many of the identified urls has already happened – and orders on the basis of French law (which it applies, it suggests, per the GDPR) Google LLC to carry out delisting for the others in as far as searches are carried out from French territory. X’s privacy is given priority over freedom of expression and Google LLC’s US domicile is not mentioned as being relevant (no verbatim discussion of same is recorded in the judgment. X’s French nationality and domicile however, are, hence presumably it is the infamous Article 14 Code Civil which is at play here). Google’s argument that the as listed urls link to articles in languages other than French and relating to facts taking place outside of France is dismissed as irrelevant.
Claimant however had requested global delisting, regardless of the user’s geographical location. That, the court holds, is a request it cannot grant. Its refusal is justified in one sentence only: a global delisting order would be disproportionate in the case of a French national and resident, simply because his employment record is international:
‘une telle mesure apparaît ici disproportionnée, s’agissant d’un résident français, le seul caractère international de ces démarches d’emploi ne pouvant justifier d’une telle restriction, qui conduirait in fine à soumettre le réseau internet à une injonction de portée globale.’
The judgment therefore does not tackle the conceptual issues surrounding jurisdiction (which the Belgian courts, for instance, have been tempted into in the Facebook case), neither does it rule out global injunctions in cases which have more than just a fleeting international element.
I have review of Shell at the CJEU here, and final judgment in Rotterdam here. Next Thursday the hearing takes places in C-624/17 Tronex which echoes many of the issues in Shell. When, if at all, is the definition of waste triggered in a reverse logistics chain: with a focus on the relationships between the various professional parties in the chain (that the consumer is not handling waste when returning a product in these circumstances is now fairly established).
Questions referred are below.
Handbook of EU Waste law, 2nd ed. 2015, OUP, 1.166 ff and 1.189 ff.
1. (a) Is a retailer which sends back an object returned by a consumer, or an object in its product range that has become redundant, to its supplier (namely the importer, wholesaler, distributor, producer or anyone else from whom it has obtained the object) pursuant to the agreement between the retailer and its supplier to be regarded as a holder which discards the object, within the meaning of Article 3.1 of the Framework Directive? 1
(b) Would the answer to Question 1.(1) be different if the object is one which has an easily repairable fault or defect?
(c) Would the answer to Question 1.(1) be different if the object is one which has a fault or defect of such extent or severity that it is, as a result, no longer suitable or usable for its original purpose?
2. (a) Is a retailer or supplier which sells on an object returned by a consumer, or an object in its product range which has become redundant, to a buyer (of residual consignments) to be regarded as a holder which discards the object, within the meaning of Article 3.1 of the Framework Directive?
(b) Is the answer to Question 2.(1) affected by the amount of the purchase price to be paid by the buyer to the retailer or supplier?
(c) Would the answer to Question 2.(1) be different if the object is one which has an easily repairable fault or defect?
(d) Would the answer to Question 2.(1) be different if the object is one which has a fault or defect of such extent or severity that it is, as a result, no longer suitable or usable for its original purpose?
3. (a) Is the buyer which sells on to a (foreign) third party a large consignment of goods bought from retailers and suppliers and returned by consumers, and/or goods that have become redundant, to be regarded as a holder which discards a consignment of goods, within the meaning of Article 3.1 of the Framework Directive?
(b) Is the answer to Question 3.(1) affected by the amount of the purchase price to be paid by the third party to the buyer?
(c) Would the answer to Question 3.(1) be different if the consignment of goods also contains some goods which have an easily repairable fault or defect?
(d) Would the answer to Question 3.(1) be different if the consignment of goods also contains some goods which have a fault or defect of such extent or severity that the object in question is no longer, as a result, suitable or usable for its original purpose?
(e) Is the answer to Questions 3.(3) or 3.(4) affected by the percentage of the whole consignment of the goods sold on to the third party that is made up of defective goods? If so, what percentage is the tipping point?
Case C-60/18 AS Tallinna Vesi could have been, as Advocate General Kokott noted yesterday, about much more. In particular about the exact scope of the Waste Framework Directive’s exclusion for sewage sludge and the relation between the WFD, the waste water Directive and the sewage sludge Directive. However the referring court at least for the time being sees no issue there (the AG’s comments may trigger the applicant into making it an issue, one imagines) and the AG therefore does not entertain it.
Instead the case focusses on whether waste may no longer be regarded as such only if and after it has been recovered as a product which complies with the general standards laid down as being applicable to it? And on whether, alternatively, a waste holder be permitted to request that the competent authorities decide, on a case-by-case basis and irrespective of whether any product standards are in place, whether waste is no longer to be regarded as such.
Ms Kokott emphasises the wide margin of discretion which the Member States have in implementing the Directive. End of waste criteria at the national level (in the absence of EU criteria) may not always be warranted particularly in the context of sewage sludge which is often hazardous. However precisely that need for ad hoc assessment should be mirrored by the existence of a procedure for waste operators to apply ad hoc for clarification on end of waste status.
Handbook of EU Waste law, 2nd ed. 2015, OUP, 1.166 ff and 1.189 ff.