Order of the General Court (Eighth Chamber) of 24 October 2019

Data

Court: General Court

Case date: 24 oktober 2019

Verdict

Order of the General Court (Eighth Chamber) of 24 October 2019 –
Liaño Reig v SRB

(Case T‑557/17)

"(Action for annulment - Economic and monetary policy - Compensation claim - Single resolution mechanism for credit institutions and certain investment firms - Resolution procedure - Resolution scheme for Banco Popular Español - Partial annulment - Non-severability - Inadmissibility)"

1. Action for annulmentPurposePartial annulmentConditionSeverability of the contested provisionsApplication for annulment of a resolution decision of the Single Resolution BoardInseparability of the decision to convert capital instruments from the resolution decisionRequirement not metInadmissibility

(Art. 263 TFEU; European Parliament and Council Regulation No 806/2014)

(see paras 25, 26, 35, 36, 52)

2. Economic and monetary policyEconomic policyResolution proceedingsWrite-down and conversion of capital instrumentsPrinciple of equal treatment of creditors in the same categoryScope

(Art. 263 TFEU; European Parliament and Council Regulation No 806/2014, Arts 15(1)(f) and 21)

(see paras 43-46)

3. EU lawPrinciplesEqual treatmentConcept

(Charter of Fundamental Rights of the European Union, Arts 20 and 21)

(see para. 47)

Re:

First, an application based on Article 263 TFEU seeking annulment of Article 6(1)(d) of Decision SRB/EES/2017/08 of the SRB of 7 June 2017 concerning the adoption of a resolution scheme in respect of Banco Popular Español SA, in so far as it makes provision for the conversion of Tier 2 capital instruments identified by the International Securities Identification Number (ISIN) XS 0550098569 into new shares in Banco Popular Español, and the provisional valuation carried out by the independent expert and the provisional valuation carried out by the SRB, and secondly, an application based on Article 266 TFEU seeking compensation, following on from the annulment, for the loss allegedly suffered as a result of that conversion.

Operative part

1. The action is dismissed as inadmissible.

2. There is no longer any need to adjudicate on the applications to for leave to intervene submitted by Banco Santander SA, the Kingdom of Spain and the European Commission.

3. Ms Carmen Liaño Reig shall bear her own costs and pay those incurred by the Single Resolution Board (SRB), with the exception of those relating to the applications for leave to intervene.

4. Ms Carmen Liaño Reig, the SRB, Banco Santander, the Kingdom of Spain and the Commission shall bear their own costs relating to the applications for leave to intervene.