Product liability

The term product liability refers to liability for defective products.

1. Consumer product liability
Product liability for defective products purchased by consumers is governed by statute (Product Liability Act = ProdHaftG). The Product Liability Act sets for the circumstances under which the manufacturer of a defective product must compensate the injured party for resulting personal or bodily injury.

The statute has important limitations on compensable damages to property due to a defective product. First, compensatory damage liability under the Product Liability Act comes into play only if some item other than the manufactured item is damaged. However, this will only apply if the damaged item is normally intended for private consumer use and is in fact so used.

In addition, one must keep in mind that the legislature in § 11 of the Product Liability Act included a €500 deductible. Thus, if damages are less than €500, the injured party – at least under the Product Liability Act – must bear the damages himself.

2. Business product liability (B2B)
Product liability also applies in the commercial arena. However, [unlike consumer product liability] this normally requires proof of culpable negligence on the part of the manufacturer to sustain the damage claim.

In each case one must first clarify why the event of damage or loss occurred at all. The fact that something does not function properly does not necessarily mean that the parts supplied by the vendor are necessarily defective (deficient). Here, one must work with technicians to clarify, in particular, the peculiarities of the product’s specific use. For example, it could turn out that it was not the machinery parts that were defective but rather undesirable additives in the lubricating oil used.

Even if it turns out that a supplied part has failed, this does not necessarily mean that the supplier of the part is liable. If the supplier was not the manufacturer of the part delivered, but is merely a dealer, he will not be assigned liability for negligent product liability (§ 823 of the BGB) for a defect in a delivered part that causes damages in another part. The dealer will not be normally held liable unless he has himself been somehow negligent.

An accurate clarification of facts is crucial in this area. We would be happy to offer you the benefit of our many years of technical experience in assisting you in that effort.