Jean-Claude Van Hove v CNP Assurances SA.

• Jurisdiction: European Union
• Celex Number: 62014CJ0096
• ECLI: ECLI:EU:C:2015:262
• Date: 23 April 2015
• Court: Court of Justice (European Union)
• Procedure Type: Reference for a preliminary ruling
• Docket Number: C-96/14

JUDGMENT OF THE COURT (Third Chamber)

23 April 2015 (*1 )

‛Reference for a preliminary ruling — Directive 93/13/EEC — Unfair terms — Insurance contract — Article 4(2) — Assessment of the unfairness of contractual terms — Exclusion of terms relating to the main subject-matter of the contract — Term intended to ensure that mortgage loan repayments are covered — Borrower’s total incapacity for work — Exclusion from cover in the event of recognised fitness to undertake an activity, paid or otherwise’

In Case C‑96/14,

REQUEST for a preliminary ruling under Article 267 TFEU from the tribunal de grande instance de Nîmes (France), made by decision of 26 February 2014, received at the Court on 28 February 2014, in the proceedings

Jean-Claude Van Hove

v

CNP Assurances SA,

THE COURT (Third Chamber),

composed of M. Ilešič, President of the Chamber, A. Ó Caoimh, C. Toader (Rapporteur), E. Jarašiūnas and C.G. Fernlund, Judges,

Advocate General: N. Jääskinen,

Registrar: V. Tourrès, Administrator,

having regard to the written procedure and further to the hearing on 9 December 2014,

after considering the observations submitted on behalf of:

— CNP Assurances SA, by P. Woolfson and I. de Seze, avocats,

— the French Government, by S. Menez, D. Colas and S. Ghiandoni, acting as Agents,

— the European Commission, by M. Owsiany-Hornung and M. van Beek, acting as Agents,

having decided, after hearing the Advocate General, to proceed to judgment without an Opinion,

gives the following

Judgment

1 The request for a preliminary ruling concerns the interpretation of Article 4(2) of Council Directive 93/13/EEC of 5 April 1993 on unfair terms in consumer contracts (OJ 1993 L 95, p. 29).

2 The request has been made in proceedings between Mr Van Hove and CNP Assurances SA (‘CNP Assurances’) concerning an allegedly unfair contractual term in an insurance contract that includes the definition of ‘total incapacity for work’ for the purposes of that company’s cover of repayments on mortgage loans taken out by Mr Van Hove.

Legal context

EU law

3 The nineteenth and twentieth recitals in the preamble to Directive 93/13 read as follows: ‘Whereas, for the purposes of this Directive, assessment of unfair character shall not be made of terms which describe the main subject-matter of the contract nor the quality/price ratio of the goods or services supplied; whereas the main subject-matter of the contract and the price/quality ratio may nevertheless be taken into account in assessing the fairness of other terms; whereas it follows, inter alia, that in insurance contracts, the terms which clearly define or circumscribe the insured risk and the insurer’s liability shall not be subject to such assessment since these restrictions are taken into account in calculating the premium paid by the consumer; Whereas contracts should be drafted in plain, intelligible language, the consumer should actually be given an opportunity to examine all the terms and, if in doubt, the interpretation most favourable to the consumer should prevail.’

4 Article 1(1) of that directive provides: ‘The purpose of this Directive is to approximate the laws, regulations and administrative provisions of the Member States relating to unfair terms in contracts concluded between a seller or supplier and a consumer.’

5 Article 3(1) of that directive provides: ‘A contractual term which has not been individually negotiated shall be regarded as unfair if, contrary to the requirement of good faith, it causes a significant imbalance in the parties’ rights and obligations arising under the contract, to the detriment of the consumer.’

6 Article 4 of Directive 93/13 states: ‘1. Without prejudice to Article 7, the unfairness of a contractual term shall be assessed, taking into account the nature of the goods or services for which the contract was concluded and by referring, at the time of conclusion of the contract, to all the circumstances attending the conclusion of the contract and to all the other terms of the contract or of another contract on which it is dependent. 2. Assessment of the unfair nature of the terms shall relate neither to the definition of the main subject-matter of the contract nor to the adequacy of the price and remuneration, on the one hand, as against the services or goods [supplied] in exchange, on the other, in so far as these terms are in plain, intelligible language.’

7 According to Article 5 of that directive: ‘In the case of contracts where all or certain terms offered to the consumer are in writing, these terms must always be drafted in plain, intelligible language. Where there is doubt about the meaning of a term, the interpretation most favourable to the consumer shall prevail. …’

French law

8 The seventh paragraph of Article L 132-1 of the Consumer Code, which transposes Article 4(2) of Directive 93/13 into French law, provides: ‘Assessment of the unfair character of the terms … shall relate neither to the definition of the main subject-matter of the contract nor to the adequacy of the price or remuneration as against the goods sold or services provided in so far as these terms are in plain, intelligible language.’

9 Article L. 133-2 of that code is worded as follows: ‘Contractual terms proposed by sellers or suppliers to consumers or non-professionals must be presented and drafted in plain, intelligible language. In the event of doubt, they shall be interpreted in the sense which is most favourable to the consumer or the non-professional. …’

The dispute in the main proceedings and the question referred for a preliminary ruling

10 In July 1998, Mr Van Hove concluded two loan contracts with Crédit Immobilier de France Méditerranée for the amounts, respectively, of FRF 340600 (EUR 51924), repayable at a rate of EUR 434.43 per month until 31 March 2016, and FRF 106556 (EUR 16244), repayable at a rate of EUR 26.70 per month until 31 March 2017.

11 At the time of concluding those loan contracts, he also signed a ‘group insurance contract’ with CNP Assurances (‘the insurance contract’). The first clause of that insurance contract guarantees to cover all loan repayments ‘due from the borrowers to the contracting party in the event of death, permanent and absolute invalidity or 75% of such loan repayments in the event of total incapacity for work’.

12 Under the second clause of that contract, ‘[t]he insured person shall be regarded as being in a state of total incapacity for work if, after 90 consecutive days’ interruption of activity following an accident or illness (“the waiting period”), he finds himself unable to take up any activity, paid or otherwise’.

13 On 17 February 2010, Mr Van Hove was obliged to take a leave of absence from work due to a relapse connected with a work-related accident of 13 June 2000. Mr Van Hove’s state of health was certified as having stabilised by 17 October 2005. His rate of permanent partial incapacity for work (‘his permanent partial incapacity rate’) was assessed at 23%.

14 On 14 May 2005, he had surgery on a fistula resulting from the work-related accident. His state of health was certified as having stabilised on 4 November 2005 and his permanent partial incapacity rate was assessed at 67%. Owing to an outbreak of dizziness, he was obliged to take leave of absence from work on 3 August 2007 which was extended until 22 February 2008.

15 With effect from 1 January 2011, his permanent partial incapacity rate was set by the social security authorities at 72%. On that basis, he was allocated a monthly allowance of EUR 1057.65.

16 On 18 June 2012, for the purposes of assessing the cover payable by CNP Assurances, the doctor appointed by that company examined Mr Van Hove. He concluded that Mr Van Hove’s state of health allowed him to carry on appropriate employment on a part-time basis. By letter of 10 July 2012, CNP Assurances informed Mr Van Hove that, with effect from 18 June 2012, it would no longer cover his loan repayments. By further letter of 29 August 2012, it maintained its refusal to make repayments, explaining to Mr Van Hove that while his state of health was no longer compatible with him returning to his former post, he was fit to carry on appropriate employment, at least on a part-time basis.

17 On 4 March 2013, Mr Van Hove brought proceedings before the referring court against CNP Assurances. He asks that court, primarily, on the basis, inter alia, of the provisions of the Consumer Code, to declare that the terms of the contract between him and CNP Assurances relating to the definition of ‘total incapacity for work’ and the conditions under which cover for that incapacity is acquired are unfair, and to order the defendant in the main proceedings to cover the sums which are still outstanding in connection with the two loans referred to above with effect from June 2012.

18 In support of his claims, Mr Van Hove argues, first, that the term of the insurance contract which makes provision of cover by the insurer conditional upon it being completely impossible for the insured person to take up any activity, paid or otherwise, is unfair because it causes a significant imbalance between the parties to that contract, to the detriment of the consumer. Secondly, he claims that the definition of ‘total incapacity for work’ is worded in such a way as to prevent a lay consumer from being able to grasp its full significance.

19 CNP Assurances asks the referring court, in essence, to dismiss Mr Van Hove’s...