General Court of the European Union Rules Iranian Company May Recover Damages for Improper Sanctions (November 25, 2014) [1]
On November 25, 2014, the General Court of the Court of Justice of the European Union (the Court) ruled [3] in Safa Nicu Sepahan v. Council that the applicant, an Iranian company, may receive damages from the Council of the European Union (the Council) for sanctioning the applicant without proper evidence. This case is the first in which the Court awarded monetary damages for the improper inclusion of a company on a sanctions list. According to a blog post [4], the Court “annulled the [applicant’s] designation on the grounds that the Council had ‘manifestly erred’ in including the applicant and had not discharged its burden of proof.” Although the applicant requested several million Euros in damages for lost business and damaged reputation, the Court awarded “€50,000 plus default interest from the date of judgment until full payment of compensation.”