Abstract
This chapter identifies and discusses systemic, institutional and constitutive factors that affect damages claims at the national level. In particular it considers the national policy making sphere, the institutional framework, the determination of the applicable law, various causes of action and the justiciability of public procurement norms (material conditions, standing, and prescription).
This is a preview of subscription content, log in via an institution to check access.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Notes
- 1.
JM Hebly, ET de Boer & FG Wilman, Rechtsbescherming bij aanbesteding (Paris, Uitgeverij Paris, 2007).
- 2.
Zembla, ‘Sjoemelen met miljoenen’ (9 November 2001), zembla.vara.nl/seizoenen/2001.
- 3.
Significant BV, Nalevingsmeting Europees aanbesteden for various years, www.rijksoverheid.nl.
- 4.
Significant BV, Nalevingsmeting Europees aanbesteden 2010 (2012), www.rijksoverheid.nl.
- 5.
Significant BV, Nalevingsmeting Europees aanbesteden 2008 (2010), www.rijksoverheid.nl.
- 6.
Case C-354/98 Commission v France [1999] ECR I-04927, operative part.
- 7.
See also the overview provided in SIGMA, Central Public Procurement Structures and Capacity in Member States of the European Union, Sigma Paper No 40 (OECD 2007), pp 18–20.
- 8.
See also kamerstuk 28244 nr 11, p 68.
- 9.
Not only was criticism on arbitration voiced from a national perspective, especially in relation to the construction sector scandal, but the conformity with European law also became increasingly questioned. Kamerstuk 2005/2006 30 502, nr 4, pp 4–5.
- 10.
Characteristics taken into account in order to judge whether a body qualifies as a part of the judiciary are the legal basis of the organ, its permanent character, the bindingness of its jurisdiction, the principle of being heard, the independence of the organ and so on.
- 11.
This is also the conclusion reached in the ‘Enquete Bouwvernijheid’ report, see kamerstuk 28244 nr 11, p 66.
- 12.
Kamerstuk 30501 Nr. 3 p 26.
- 13.
In the context of the Dutch construction scandal, the RvA was named as one of the structural characteristics which was responsible for the limited sanction of irregularities, see the ‘Enquete Bouwnijverheid’, above n 11, nrs 5–6, p 57 stating that, contrary to regular arbitration, the RvA has no representative of contracting authorities, kamerstuk 28 244, above n 11, nr. 24 p 13, proposing a reformulation of the role of the RvA.
- 14.
For this comment see Nota naar aanleiding van het verslag kamerstuk 32027 C, p 2.
- 15.
HR 22 January 1999, NJ 2000,305 (Uneto/De Vliert).
- 16.
Article 4.26 of the Aanbestedingswet 2012 provides that, in case of arbitration, the annulment procedure for arbitration awards under Article 1064 Rv must be made available.
- 17.
The above example serves as a specific illustration of the generally uneasy relationship between arbitration and EU law. The issue most clearly arose in Eco Swiss in Competition law, from where it spilled into Consumer law, an area in which numerous references to the topic illustrate the legal uncertainty surrounding arbitration. See C-126/97 Eco Swiss [1999] ECR I-3055.
- 18.
This is the reasoning endorsed, in eg kamerstuk 28 244, nr. 11, above n 11, p 31. This requires a chain of argumentation: First, a reading of Eco Swiss to the effect that an arbitration award in violation of ex-Article 81 EC must be annulled. Secondly, the reasoning to be applied to the public procurement directives, as implying that a breach of the public procurement directives constitutes (like a breach of ex-Article 81 EC) a breach of public order. For secondary legislation, the case law has developed this position in Asturcom to the effect that under the principle of equivalence, a provision in consumer law had to be treated as such a fundamental provision that it would count in the equivalence test as a provision of public policy. There, the ECJ held ‘[a]ccordingly, in view of the nature and importance of the public interest underlying the protection which Directive 93/13 confers on consumers, Article 6 of the directive must be regarded as a provision of equal standing to national rules which rank, within the domestic legal system, as rules of public policy’ (para 52). Whether or not the public procurement rules can be considered as equally fundamental for the European legal order as consumer law would have to be judicially determined.
- 19.
Hordijck et al also argue that one ‘can’ defend the position that the annulment of an arbitration award (such as the Dutch ex Article 1064 Rv) counts as a review along the Directives. See EH Pijnacker Hordijk, WH van Boom & JF van Nouhuys, Aanbestedingsrecht. Handboek van het Europese en het Nederlandse Aanbestedingsrecht (Den Haag, Sdu Uitgevers, 2009) They refer, for example, to the general fact that arbitration proceedings are clearly not excluded, and are even implicitly endorsed through the provision on independent bodies, under the Directive. They are certainly right on the argument that if one were to require full scrutiny by a civil judge, arbitration loses its advantages of being less time and cost intensive.
- 20.
Critical views are also expressed in kamerstuk 28244, above n 11, nr 11 p 68.
- 21.
The kort geding summary procedure is regulated by Arts 254 – 260 Rv. See also W Hugenholtz & WH Heemskerk, Hoofdlijnen van Nederlands Burgerlijk Procesrecht (Den Haag, Elsevier, 2006). References to case law in this section derive from their account.
- 22.
HR 31 January 1975, NJ 1976, 146.
- 23.
See Art 257 Rv.
- 24.
HR 2 February 1968, NJ 1968, 62.
- 25.
By way of example, see kamerstuk 2008/2009 32 027, Nr 3, 3. See also Hebly, de Boer & Wilman, Rechtsbescherming bij aanbesteding, above n 1.
- 26.
ibid, p 51.
- 27.
See Art 256, 257 Rv.
- 28.
Case C-568/08 Combinatie Spijker Infrabouw [2010] ECR I-12655.
- 29.
Regulation (EC) No 864/2007 of the European Parliament and of the Council of 11 July 2007 on the law applicable to non-contractual obligations [hereinafter ‘Rome II’].
- 30.
Art 34 Einführungsgesetz zum Bürgerlichen Gesetzbuche (EGBGB): ‘Dieser Unterabschnitt berührt nicht die Anwendung der Bestimmungen des deutschen Rechts, die ohne Rücksicht auf das auf den Vertrag anzuwendende Recht den Sachverhalt zwingend regeln’.
- 31.
GS Hök, ‘Zum Vergabeverfahren im Lichte des Internationalen Privatrechts’ (2010) ZfBR 440, p 442; OLG Düsseldorf 14.05.2008 – Verg 27/08, VergabeR 2008, 661, 663.
- 32.
ibid. This might result in a splitting of the law applicable to a procurement situation – however, it seems that within our treatment of cases of damages claims that aspect can be neglected.
- 33.
Article 9(1) Regulation (EC) No 593/2008 of the European Parliament and of the Council of 17 June 2008 on the law applicable to contractual obligations [hereinafter ‘Rome I’].
- 34.
R 32 of the Rome II Regulation states: ‘Considerations of public interest justify giving the courts of the Member States the possibility, in exceptional circumstances, of applying exceptions based on public policy and overriding mandatory provisions. In particular, the application of a provision of the law designated by this Regulation which would have the effect of causing noncompensatory exemplary or punitive damages of an excessive nature to be awarded may, depending on the circumstances of the case and the legal order of the Member State of the court seised, be regarded as being contrary to the public policy (ordre public) of the forum.’ See Rome II, above n 29.
- 35.
AS Graells, Public Procurement and the EU Competition Rules (Oxford, Hart Publishing, 2011).
- 36.
Hök, ‘Zum Vergabeverfahren im Lichte des Internationalen Privatrechts’, above n 31, pp 440–448.
- 37.
GS Hök, ‘Neues europäisches Internationales Baurecht’ (2008) ZfBR 741, p 747.
- 38.
Harmon CFEM Façades (UK) Ltd v Corporate Officer of the House of Commons (1999) 67 Con LR 1 at 196, para 259.
- 39.
M Bowsher & P Moser, ‘Damages for Breach of the EC Public Procurement Rules in the United Kingdom’ (2006) Public Procurement Law Review 195, p 203.
- 40.
In Germany, the literature holds different views on the relationship of Francovich liability and the German State liability regime of §839 BGB combined with Article 34 Basic Law. A pragmatic solution combines both aspects, providing for damages via the German liability course of action, which – if necessary – may be reinterpreted through the EU law-derived constitutive criteria as trumping national, more restrictive, ones. In order to claim damages in public procurement, the national State liability provision is generally not viewed as a pertinent or effective cause of action.
- 41.
V Eiró & E Mealha, ‘Damages under Public Procurement: The Portuguese Case’, in D Fairgrieve & F Lichère (eds), Public Procurement Law: Damages as an Effective Remedy (Oxford, Hart Publishing, 2011).
- 42.
Case C-433/93 Commission v Germany [1995] ECR I-2303, para 24.
- 43.
Eiró & Mealha, ‘Damages under Public Procurement’, above n 41.
- 44.
Judgment in Combinatie Spijker Infrabouw-De Jonge Konstruktie and Others, C-568/08, ECLI:EU:C:2010:751.
- 45.
M Burgi, ‘Zukunft des Vergaberechts’ (2009) NZBau 609, p 612.
- 46.
Commission v Germany, above n 42.
- 47.
Following the usual infringement procedure, involving a formal letter from the Commission on 27 February 1992 and reasoned opinions given on 3 December 1992, on 3 November 1993 the Commission sought a declaration that the Federal Republic of Germany had failed to fulfill its obligations under the Treaty.
- 48.
Directive 89/440/EEC of 18 July 1989 amending Directive 71/305/EEC concerning coordination of procedures for the award of public works contracts and with Council Directive 88/295/EEC of 22 March 1988 amending Directive 77/62/EEC relating to the coordination of procedures on the award of public supply contracts and repealing certain provisions of Directive 80/767/EEC.
- 49.
Commission v Germany, above n 42, Opinion of Advocate General Elmer (11 May 1995), para 4.
- 50.
Commission v Germany, above n 42, para 5.
- 51.
Case C-361/88 Commission v Germany concerned Germany’s implementation of Directive 80/779 on Air pollution and fixing of limit values applicable to concentrations of sulphur dioxide. Regarding the mandatory nature of the administrative circular, the ECJ found the existence of an administrative circular to constitute an absence of a general mandatory rule: ‘It must be stated that, in the particular case of the technical circular “air”, the Federal Republic of Germany has not pointed to any national judicial decision explicitly recognizing that that circular, apart from being binding on the administration, has direct effect vis-à-vis third parties. It cannot be claimed, therefore, that individuals are in a position to know with certainty the full extent of their rights in order to rely on them, where appropriate, before the national courts or that those whose activities are liable to give rise to nuisances are adequately informed of the extent of their obligations. 21 It follows from the foregoing considerations that it is not established that Article 2(1) of the directive has been implemented with unquestionable binding force, or with the specificity, precision and clarity required by the case-law of the Court in order to satisfy the requirement of legal certainty.’ See C-361/88 Commission of the European Communities v Federal Republic of Germany [1988] ECR I-2567.
- 52.
Commission v Germany, above n 42, para 21.
- 53.
ibid, para 18.
- 54.
ibid, para 23.
- 55.
ibid, para 24.
- 56.
26 November 1993 (BGBl. I S. 1928) das Haushaltsgrundsätzegesetz, HGrG, Statute on the Principles on the Spending of Public Funds.
- 57.
In order to indicate the fact that the legal instrument is at the heart of this definitional matter, the term ‘theory of protective provision’ seems more accurate.
- 58.
See K Péguret, Schadensersatzansprüche übergangener Bieter im Vergaberecht (Jenaer Wissenschaftliche Verlagsgesellschaft, 2010), p 74.
- 59.
ibid, p 78.
- 60.
ibid, p 81.
- 61.
JM Hebly & FG Wilman, ‘Damages for Breach of Public Procurement Law. The Dutch Situation’, in D Fairgrieve & F Lichère (eds), Public Procurement Law. Damages as an Effective Remedy (Oxford, Hart Publishing, 2011), p 85.
- 62.
Case C-406/08 Uniplex (UK) [2010] ECR I-00817, para 35.
- 63.
ibid, para 31.
- 64.
ibid, para 39.
- 65.
ibid, para 43.
- 66.
Case C-314/09 Strabag and others [2010] ECR I-8769, para 37. Among others referring to Case C-470/99 Universale-Bau and Others [2002] ECR I-11617, paras 74 to 78 and Uniplex, above n 62, para 38 as authority.
- 67.
See also Chap. 4 fn 9 for details on the ‘Portuguese saga’.
- 68.
Two annotations are listed on the ECJs website, only one -an admittedly brief case note- in English: M Dischendorfer, ‘The Conditions Member States May Impose for the Award of Damages under the Public Remedies Directive: Case C-275/03 Commission v Portugal’ (2005) Public Procurement Law Review 19.
- 69.
Case C-275/03 Commission v Portugal [2004] (unpublished).
- 70.
ibid, paras 31, 32 (judgment only available in French).
- 71.
It seems that several Member States made, or possibly still make, claims for damages subject to a condition of negligence. See D Pachnou, The Effectiveness of Bidder Remedies for Enforcing the EC Public Procurement Rules: a Case Study of the Public Works Sector in the United Kingdom and Greece (Dissertation, University of Nottingham, 2003), s 2.8.2.
- 72.
Strabag, above n 66, paras 35–36.
- 73.
ibid.
- 74.
C Alexander, ‘Vergaberechtlicher Schadensersatz gemäss §126 GWB’ (2009) Wettbewerb in Recht und Praxis 28, p 36.
Bibliography
Alexander, C (2009) ‘Vergaberechtlicher Schadensersatz gemäss §126 GWB’, Wettbewerb in Recht und Praxis 28, 36
Bowsher, M & Moser, P (2006) ‘Damages for Breach of the EC Public Procurement Rules in the United Kingdom’ Public Procurement Law Review 195, 203.
Burgi, M (2009) ‘Zukunft des Vergaberechts’ NZBau 609, 612.
Dischendorfer, M (2005) ‘The Conditions Member States May Impose for the Award of Damages under the Public Remedies Directive: Case C-275/03 Commission v Portugal’, Public Procurement Law Review 19.
Eiró, V & Mealha, E (2011) ‘Damages under Public Procurement: The Portuguese Case’, in D Fairgrieve & F Lichère (eds), Public Procurement Law: Damages as an Effective Remedy (Oxford, Hart Publishing).
Graells, AS (2011) Public Procurement and the EU Competition Rules (Oxford, Hart Publishing).
Hebly, JM, de Boer, ET & Wilman, FG (2007) Rechtsbescherming bij aanbesteding (Paris, Uitgeverij Paris).
Hebly, JM & Wilman, FG (2011) ‘Damages for Breach of Public Procurement Law. The Dutch Situation’, in D Fairgrieve & F Lichère (eds), Public Procurement Law. Damages as an Effective Remedy (Oxford, Hart Publishing).
Hök, GS (2008) ‘Neues europäisches Internationales Baurecht’ ZfBR 741, 747.
Hök, GS (2010) ‘Zum Vergabeverfahren im Lichte des Internationalen Privatrechts’ ZfBR 440, 442.
Hugenholtz, W & Heemskerk, WH (2006) Hoofdlijnen van Nederlands Burgerlijk Procesrecht (Den Haag, Elsevier).
Pachnou, D (2003) The Effectiveness of Bidder Remedies for Enforcing the EC Public Procurement Rules: a Case Study of the Public Works Sector in the United Kingdom and Greece (Dissertation, University of Nottingham).
Péguret, K (2010) Schadensersatzansprüche übergangener Bieter im Vergaberecht (Jenaer Wissenschaftliche Verlagsgesellschaft).
Pijnacker Hordijk, EH, van der Bend, GW & Van Nouhuys, JF (2009) Aanbestedingsrecht. Handboek van het Europese en het Nederlandse Aanbestedingsrecht (Den Haag, Sdu Uitgevers).
SIGMA (2007) Central Public Procurement Structures and Capacity in Member States of the European Union, Sigma Paper No 40 (OECD).
Author information
Authors and Affiliations
Rights and permissions
Copyright information
© 2016 Springer International Publishing Switzerland
About this chapter
Cite this chapter
Schebesta, H. (2016). Issue Based Analysis of Public Procurement Damages. In: Damages in EU Public Procurement Law. Studies in European Economic Law and Regulation, vol 6. Springer, Cham. https://doi.org/10.1007/978-3-319-23612-4_9
Download citation
DOI: https://doi.org/10.1007/978-3-319-23612-4_9
Publisher Name: Springer, Cham
Print ISBN: 978-3-319-23611-7
Online ISBN: 978-3-319-23612-4
eBook Packages: Law and CriminologyLaw and Criminology (R0)