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Europe Daily Bulletin No. 9427
Contents Publication in full By article 24 / 38
GENERAL NEWS / (eu) eu/court of justice

Court of First Instance refuses most damages claimed against Commission for failing to conclude contract for lease

Luxembourg, 15/05/2007 (Agence Europe) - On 8 May, a real-estate subsidiary of Fortis, Citymo SA (Belgium), was refused most of its claim for costs made against the Commission when the latter broke off negotiations on a contract for a lease with regard to a building complex in Brussels, the “City Center”. According to the ruling of the Court of First Instance (T-271/04), Citymo should not have interpreted the tone of negotiations as a sign of definitive commitment on the part of the Commission, and the Commission is therefore not responsible for costs undertaken by Citymo or its suppliers for fitting out the building prior to signing the contract. Neither can it be held responsible for the fact that the real-estate was withdrawn during negotiations. On the other hand, the Court of First Instance did acknowledge the fact that the Commission's “Office for Infrastructure and Logistics in Brussels” (OIB) should have notified Citymo of its decision not to continue negotiations sooner. If, between mid-July and mid-September 2003, Citymo had been aware of the decision taken by the OIB, it could have sought a new tenant. The Court therefore ruled that the Commission should pay €20,000 to Citymo, a sum which, it estimates, corresponds to two months rent. (cd)

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