EU Court of Justice clarifies ban on legal advice

On 5 September 2024, the Court of Justice of the European Union delivered its judgment in the JEMERAK case (case number: C-109/23), which appears to be relevant to the sanctions imposed by the European Commission (the “Commission”) in connection with its provision of sanctions in connection with Russia’s military aggression in Ukraine Frequently Asked Questions (FAQs) for legal services. The court ruled that notaries are free to certify the sale of property belonging to unlisted Russian companies without violating sanctions against Russia.

The dispute is based on the amendments to Regulation (EU) No. 833/2014 on restrictive measures applicable to Russia of 6 October 2022, which increase the global ban on the provision of legal advisory services to any legal person established in Russia. prohibition, regardless of whether the legal person exists in Russia. List of persons subject to other sanctions. This prohibition is provided for in Article 5quinquies, but does not include the provision of services necessary to guarantee access to judicial proceedings.

The fact occurred in Germany that a notary public in Berlin refused to certify a sales contract for an apartment located in the city because the contract belonged to a Russian company (not listed), so the German court decided to request the petition under Article 5 The court decides whether the ban applies in this case.

Both the referring court and Attorney General Medina ruled out the application of the ban. In its ruling, the German court cited the European Commission’s non-binding FAQ, which stated that the legal services ban also covered notarial activities on behalf of legal persons established in Russia.

However, a large degree of uncertainty remains about the correct interpretation of this provision. This uncertainty extends to the auxiliary tasks commonly performed by notaries in the execution of the sales contract after certification, as well as the services provided by interpreters who, by law, are required to assist a party without directing authority. Sales contract certification in German.

In his opinion, the Attorney General considered that the concept of “legal advisory services” is independent and presupposes the presence of the element of legal advisory, which does not appear in the certification task of the notary. This concept must be distinguished from legal services in general, and not all legal services are prohibited.

To reach its decision, the CJEU considered German legislation which provides that real estate sales contracts must be authenticated by a notary public acting as an independent and impartial adviser to the parties. Regulation No. 833/2014 does contain provisions prohibiting legal advisory services, but its purpose is not to prevent people from disposing of their property and entering the registration process in the Land Register. Different national laws may result in different applications.

In its judgment, the Court of Justice of the European Union held that in the absence of a definition of the concept of “legal advisory services”, the ordinary meaning of the words in everyday language must be taken into account in the context. Therefore, the court stated Certified notaries do not provide legal advisory services but act independently and impartially within the scope of their mandate from the state. In particular, the court noted that notaries do not Not provide legal advice designed to promote the specific interests of the partiessubject to verification by the Berlin courts specified in the text.

In summary, the prohibition on the provision of legal advisory services contained in Regulation No. 833/2014 does not relate to the certification by a member state’s notary of a contract for the sale of real estate located in that country and belonging to a certain country. Legal person established in Russia. The same solution applies to the auxiliary execution of acts by notaries and the translation services of interpreters.

Judgment link: Judgment of the European Court of Justice on September 5, 2024 in Case C-109/23 Jeremak

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