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Founded in 2012, Signature Litigation has grown into one of London’s pre-eminent specialist dispute resolution practices. From the outset, we set out to do things differently: a conflict-free, disputes-only platform designed to give clients the undivided focus and strategic agility that complex, high-stakes matters demand.

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Gibraltar

Established in 2017, Signature Litigation's Gibraltar office was founded to address growing demand for specialist expertise in commercial litigation and private wealth disputes on the Rock.

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Signature Litigation AARPI houses one of France’s most enviable product liability practices, with the team also handling commercial and corporate litigation, insurance and reinsurance, toxic tort and ESG, civil fraud and asset tracing, international arbitration, administrative and public law.

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Frankfurt has emerged as one of Europe's foremost financial and commercial centres and, increasingly, as a bridge between European and Asian markets. With that growth comes an increasing demand for sophisticated dispute resolution. Signature Litigation established its Frankfurt office to meet this need, bringing our conflict-free, disputes-only platform to the German market.

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EU General Court Challenges European Commission over State Aid Dispute in Gibraltar

5 June 2023

Mead Johnson is challenging the Commission's right to pass judgment on Gibraltar law, following the EU General Court ruling in April 2022 that while Gibraltar was not liable to repay amounts for alleged state aid, the EU Commission had not, in fact, overstepped its authority to intervene in Gibraltar. The Commission subsequently extended its investigation in light of this ruling.

Mead Johnson and several companies within its international group argue that because the UK left the EU in 2020, the Commission has no authority over Gibraltar including in relation to such investigations.

In the April 2022 ruling, the General Court found Gibraltar was not liable to repay EUR 100 million in state aid. The ruling nullified a European Commission 2018 decision that sections of Gibraltar's 2010 income tax code and tax rulings, which were granted to international corporations exempting intergroup loan interest and royalty payments, had unfairly favoured five multinational companies.

The Court found that the Commission had failed to give Gibraltar sufficient time to respond to the charges or to consult the territory during the investigation. However, the Court also found the Commission had not overstepped the limits of its powers in making the ruling. Both the UK and Gibraltar assert that Gibraltar governs its own affairs via an elected Parliament, whilst London retains control over the Rock’s international affairs.

The commission had opened the investigation following a complaint by Spain that the tax breaks were detrimental to neighbouring regions. This is in accordance with EU Law which dictates that EU countries and their dependent territories are prohibited from giving specific businesses or industries an advantage, such as tax breaks.