Public Funding No Defence To Defective Product Liability

Veedfald v Arhus Amtskommune ECJ TLR 4 June 2001

The fact that a Danish hospital was publicly funded did not enable it to escape liability for a defective product made and used by it which had resulted in a failed operation. Article 7(c) of Council Directive 85/374/EEC of July 25, 1985 was to be interpreted as meaning that the exemption from liability where an activity had no economic or business purpose did not extend to a case of a defective product which had been manufactured and used in the course of a specific medical service which was financed entirely from public funds and for which the patient was not required to pay any consideration. The activity in issue was not a charitable covered by article 7(c).