European Union Law ( EU Law) - limitations on the compensation recovery in state liability
The amount of damages the claimant may get in state responsibility cases may be subject to restrictions set by Member States. The "principle of equivalence" states that any such conditions cannot be less favourable than those pertaining to comparable domestic claims, and the "principle of efficacy" states that they cannot be written in a way that makes it "impossible or unduly difficult" to get restitution. The ECJ concluded that these principles applied in cases involving state liability in Brasserie/Factortame III (1996), where the Court stated:
The standards for assessing the scope of reparation shall be established by the domestic legal system of each Member State. These requirements must not, however, be less advantageous than those that apply to claims of a similar nature based on domestic law and must not, in actuality, make obtaining recompense impossible or overly challenging.
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