TWD Textilwerke Deggendorf GmbH v Germany
A person who could clearly have challenged an EU decision directly, but did not do so within the time limit, cannot challenge its validity later through a preliminary reference.
Facts
The German government gave state aid to TWD, a textile company. The Commission decided that the aid was unlawful and must be repaid, and the German government informed TWD of the decision and told it that it could challenge the decision before the EU courts. TWD did not do so within the time limit. When the German authorities sought repayment, TWD challenged their decision in the German courts, arguing that the Commission's decision was invalid, and the German court referred the question.
Legal principle
The Court of Justice held that TWD could not challenge the validity of the Commission's decision. Where a person was undoubtedly entitled to bring an action for annulment of a decision, and was informed of it in time, but did not do so within the time limit, the decision becomes definitive as against that person, and it cannot later challenge its validity in national proceedings through a preliminary reference. Otherwise, the time limits for annulment actions could be circumvented, which would undermine legal certainty.
Related cases on preliminary references
- Broekmeulen v Huisarts Registratie Commissie Case 246/80, [1981] ECR 2311
- Consorzio Italian Management v Rete Ferroviaria Italiana SpA Case C-561/19, EU:C:2021:799
- Da Costa en Schaake NV v Nederlandse Belastingadministratie Joined Cases 28/62 to 30/62, [1963] ECR 31
- Dorsch Consult Ingenieurgesellschaft mbH v Bundesbaugesellschaft Berlin mbH Case C-54/96, [1997] ECR I-4961
- Elchinov v Natsionalna zdravnoosiguritelna kasa Case C-173/09, [2010] ECR I-8889
- Foglia v Novello (No 1) Case 104/79, [1980] ECR 745
- Foto-Frost v Hauptzollamt Lübeck-Ost Case 314/85, [1987] ECR 4199
- HP Bulmer Ltd v J Bollinger SA [1974] Ch 401
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