Flat rates for legal costs incurred by succesful party allowed when covering a significant and appropriate part

LITIGATION

Directive 2004/48 allows national legislation providing that the court takes specific circumstances of the case into account whilst ordering the unsuccessful party to pay the legal costs incurred by the successful party, as well as flat rates, if reasonable, for legal costs incurred

"32. In the light of all the foregoing, the answer to the first question is that Article 14 of Directive 2004/48 must be interpreted as not precluding national legislation, such as that at issue in the main proceedings, which provides that the unsuccessful party is to be ordered to pay the legal costs incurred by the successful party, offers the courts responsible for making that order the possibility of taking into account features specific to the case before it, and provides for a flat-rate scheme for the reimbursement of costs for the assistance of a lawyer, subject to the condition that those rates ensure that the costs to be borne by the unsuccessful party are reasonable, which it is for the referring court to determine."

The proportionality principle provides that at the very least a significant and appropriate part of the reasonable costs of the successful party are borne by the unsuccessful party

"29. However, Article 14 of that directive precludes national legislation providing flat-rates which, owing to the maximum amounts that it contains being too low, do not ensure that, at the very least, that a significant and appropriate part of the reasonable costs incurred by the successful party are borne by the unsuccessful party."

The directive precludes legislation which provides that a technical advisor should only be reimbursed in the event of fault of the losing party when these costs are linked to a judicial action concerning the upholding of intellectual property rights

"40. In those circumstances, the answer to the second question is that Article 14 of Directive 2004/48 must be interpreted as precluding national rules providing that reimbursement of the costs of a technical adviser are provided for only in the event of fault on the part of the unsuccessful party, given that those costs are directly and closely linked to a judicial action seeking to have such an intellectual property right upheld."

IPPT20160728, CJEU, United Video Properties v Telenet

C-57/15 - ECLI:EU:C:2016:611