LAW

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KembaraXtra-Case Law -Veedfald v Arhus Amtskommune (2001)
Key Principle: Establishes liability under the EU Directive 85/374 for defective medical products even when the patient does not directly pay for the treatment/product.
I. Background
  • Context: Case involved a referral from the Supreme Court of Denmark to the European Court of Justice (ECJ) regarding interpretation of Articles 7 & 9 of EU Directive 85/374 (Product Liability Directive).
II. Facts
  • Claimant: Received a defective kidney. Damage was caused by the perfusion fluid used during organ preparation.
  • Defendant (Arhus Amtskommune): Argued exemption from liability based on two grounds:
    • Product not "put into circulation".
    • Product not manufactured for an "economic purpose".
III. ECJ Decision
  • "Putting into Circulation": Any product used in the provision of medical care is considered "put into circulation."
  • "Economic Purpose" Exemption (Article 7(c)): This exemption does not apply to publicly funded medical care. Even if the entity providing the care is non-profit, the activity itself has an economic dimension.
IV. Implications for UK Consumer Protection Act (CPA)
  • Relevance: The case interprets the EU Directive, which is implemented in the UK via the Consumer Protection Act 1987.
  • CPA Section 4(c) Defence: This section provides a defence against liability if:
    • (i) The only supply of the product was not in the course of a business AND
    • (ii) Section 2(2) does not apply (or only applies due to activities not aimed at profit).
  • Impact on NHS:
    • Both conditions in s4(c) MUST be satisfied for the defense to be valid.
    • Therefore, the fact that the NHS is non-profit is not sufficient for a defense under s4(c).
    • This is supported by the case of A and Others v National Blood Authority (No 1)
V. Key Takeaways
  • Publicly funded healthcare providers can be liable for defective medical products under the Directive/CPA, even if no direct payment is made by the patient.
  • The non-profit nature of a healthcare provider does not automatically exempt it from liability. The focus is on whether the activity has an economic aspect.
VI. Study Questions
  • What were the defendant's arguments for exemption from liability in Veedfald?
  • How did the ECJ define "putting into circulation" in the context of medical products?
  • Explain the relevance of CPA section 4(c) to the Veedfald case.
  • Why does the fact that the NHS is non-profit not provide a guaranteed defense against liability for defective medical products?





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