Svendborg District Court (Retten i Svenborg) has made a new reference for a preliminary ruling under Article 267 TFEU to the Court of Justice of the European Union (CJEU).
It wants to know, inter alia,whether the EU Social Security Coordination Regulation (Regulation 883/2004) grants social security institutions the ‘right of recourse’ (reimbursement from liable third parties in cross-border situations) for benefits paid by authorities in other EU Member States.
The referral is Case C-7/24, Deutsche Rentenversicherung Nord and BG Verkehr v Gjensidige Forsikring A/S and Marius Pedersen A/S, and is now pending before the CJEU.
Background and facts
Person X was injured in an industrial accident while working for a German company, DS Transport GmbH, at a Marius Pedersen A/S site in Denmark. He died shortly afterwards.
Following the accident and the death of X, Danish authorities determined that X’s widow was not entitled to benefits under Danish law, as X was covered by the German social security system.
X, the deceased employee, was insured with BG Verkehr and Deutsche Rentenversicherung Nord, which paid benefits to the widow after X’s death.
Consequently, BG Verkehr and Deutsche Rentenversicherung Nord paid benefits to Y, and sought recoupment from Marius Pedersen and its insurer, Gjensidige Forsikring.
However, Marius Pedersen and Gjensidige Forsikring refused the recoupment claims, arguing that Danish law does not provide for such recoupment, and that the widow, Y, had already received compensation under Danish law.
Proceedings
This case involves the an insurance company Gjensidige Forsikring, acting on behalf of Marius Pedersen, and its liability for recoupment claims made by the German public-law pension insurance undertakings, BG Verkehr and Deutsche Rentenversicherung Nord, following the death of X.
The core issue revolves around whether the insurance company (in Denmark) is liable to reimburse the German social security institutions for the benefits they paid to X’s widow, Y, under German law.
Interpretation of EU law
The case questions about the interpretation of Article 85(1) of Regulation (EC) No 883/2004 on the coordination of social security systems. That provision (right of instituions) states:
‘If a person receives benefits under the legislation of one Member State in respect of an injury resulting from events occurring in another Member State, any rights of the institution responsible for providing benefits against a third party liable to provide compensation for the injury shall be governed by the following rules:
(a) where the institution responsible for providing benefits is, under the legislation it applies, subrogated to the rights which the beneficiary has against the third party, such subrogation shall be recognised by each Member State;
(b) where the institution responsible for providing benefits has a direct right against the third party, each Member State shall recognise such rights.‘
This provision allows social security institutions to seek recoupment from liable third parties in cross-border cases.
Arguments of the parties
Deutsche Rentenversicherung Nord and BG Verkehr (a statutory pension insurance system and the statutory accident insurance institution in Germany) argue that their right to recoupment should be determined under German law, as they are subrogated to Y’s rights.
They contend that Danish law should not preclude their claims, as the benefits paid to the widow, Y, were mandated by German law.
Marius Pedersen A/S and Gjensidige Forsikring counter that, arguing that the recoupment claims must be assessed under Danish law, which does not recognise such claims for social security benefits.
They argue that the benefits paid to the widow, Y, under German law, do not correspond to any claims she could have under Danish law, and thus, the recoupment claims are invalid.
They also assert that the compensation paid to Y under Danish law fully discharged their liabilities.
Reference for a preliminary ruling
The legal arguments presented by both sides reflect differing views on the scope and application of the EU social security coordination regulation. The referral to the CJEU by the Svendborg District Court seeks to resolve these conflicting interpretations.
The referring court is asking whether Article 85(1) of the Regulation requires a lawful basis in the Member State where the injury occurred for the type of damages or compensation claimed for recoupment.
The ruling of the CJEU will clarify whether social security institutions can rely on their national laws when seeking recoupment in cross-border cases, or whether they must adhere to the legal provisions of the Member State where the injury occurred.
More on the case
The full reference for a preliminary ruling to the Court of Justice of the European Union made by the Svendborg District Court (Retten i Svendborg) in Case C-7/24, Deutsche Rentenversicherung Nord and BG Verkehr v Gjensidige Forsikring A/S and Marius Pedersen A/S can be read here.