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[1997] ECR I-2163; C-66/95. The claimant was denied invalidity benefit, in contravention of EC legislation. The benefits were eventually payed, but without interest on the arrears. The claimant argued that interest should be payable, using the same principle as that ennunciated by the ECJ in MarshallII1993. On this occasion, however, the ECJ was not prepared to award interest when UK law did not allow for this. Marshall, it argued, received interest on compensation paid for losses following from a breach of EC law. An award of interest in such circumstances would not be unknown in UK law, and such an award was necessary to give full effect to the Directive that was breached. Here, however, the award was not of compensation, but of restitution, and the ECJ refused to compel the payment of interest when it would not be required under national law.
There are few logical grounds for this decision, if Marshall II is correct. However, it was very widely felt that in Marshall II the ECJ had exceeded its jurisdiction. The outcome of this case can therefore be explained as an attempt to retreat from the broad principles established in Marshall II by confining it to its particular facts.
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