Defective products: Gross negligence does not exclude compensation

Defective Products and Employer Liability: Gross Negligence Doesn’t Eliminate Compensation

Key Court Ruling on Employer Compensation

On 15 October 2025 (No. 24-10.782), the French Supreme Court clarified that an employer’s gross negligence does not automatically exclude compensation for commercial loss caused by a defective product. This ruling impacts how liability for defective products interacts with other legal regimes.

Facts of the Case

An employee suffered severe facial injuries after the glass dial of a pressure gauge exploded during refrigeration system maintenance. The accident was attributed to the employer’s gross negligence by a social security tribunal, which ordered the employer to pay compensation to the employee and the health insurance fund.

The employer then sued the manufacturer of the pressure gauge, seeking:

• Reimbursement of the sums paid
• Compensation for commercial loss

Lower courts ordered reimbursement but dismissed commercial loss compensation, citing the employer’s gross negligence.

Liability for Defective Products Under French Law

The liability regime for defective products, based on EU Directive 85/374/EEC, protects victims of harm caused by unsafe products.

Articles 1245 et seq. of the Civil Code govern this regime, covering:

• Personal injury
• Property damage exceeding 500 euros (excluding the defective product itself)

Commercial Loss as Compensable Damage

On 25 May 2023 (No. 21-23.174), the French Supreme Court ruled that pecuniary and non-pecuniary losses resulting from damage to reputation caused by harm to a person or property other than the defective product itself, including indirect harm, are covered by the defective product liability regime.

Interaction Between Manufacturer and Employer Liability

Article 1245-12 of the Civil Code allows reduction or elimination of producer liability if the victim’s fault contributed to the damage. However, the Court ruled that the explosion was due to a manufacturing defect and the employer’s fault was not the sole cause of damage to its reputation.

‍Key takeaway: Gross negligence does not automatically bar compensation when the product defect contributed to the damage.

What This Means for Businesses

Employers can still claim damages for defective products even if gross negligence is established.

Has your business suffered damage as a result of a product defect? Contact the firm today to exercise your rights.