Resolution of the Higher Commercial Court of Ukraine, dated January 17, 2017, case No. 910/17944/15. Available at http://www.reyestr.court.gov.ua/Review/64233322

On July 13, 2015 the Limited Liability Company “Time Tracker” submitted an action to a commercial court for the recovery of UAH 640999.12 as property damages from the Private Joint Stock Company “Autocapital” due to product defects in accordance with articles 1166, 1209-1211-1 of the Ukrainian Civil Code, articles 1, 4, 6, 7 and 8 of the Ukrainian Law On the liability for damage caused by product defects.

The defendant denied the claim stating that it was the car manufacturer, Daimler AG, Mercedesstraße 137, Stuttgart, Germany, who should be responsible on the ground of the judgment of the Commercial Court of the Transcarpathian region, case No. 907/937/13, and the plaintiff was not the owner or user of the damaged vehicle at the moment when the damage was inflicted, and, therefore, the plaintiff did not prove that the defendant committed misconduct resulting in defendant’s liability under Article 1166 of the Ukrainian Civil Code and the Ukrainian Law On the liability for damage caused by product defects.

The lower courts ascertained and the case file confirms that on July 18, 2012 in the territory of the Subsidiary company “Barva Auto” of the Limited Liability Company “Barva”” at the city of Mukacheve, 5A Priashivska Str., the vehicle Mercedes-Benz Actros 1884 had flamed up, and because of that the cars standing near also had been damaged, including the vehicle Mercedes Benz 906 owned by the plaintiff.

Taking into account that the fire outbreak in the vehicle Mercedes-Benz Actros 1884 was caused by a defect of this vehicle and that the fire outbreak resulted in inflicting the damage on the vehicle of the plaintiff, Mercedes Benz 906, which was standing nearby, the plaintiff filed the action against the defendant, as the responsible person, for recovery of the damage, since the defendant had imported into Ukraine the vehicle which was defective.

The appellate court agreed with the findings of the lower court that the defendant was the person who officially imported the vehicle Mercedes-Benz Actros 1884 into Ukraine.

The trial chamber notes that under Article 42 of the Ukrainian Constitution the state shall control quality and safety of products and all kinds of services and works; in accordance with the requirements of Article 1210 of the Ukrainian Civil Code the damage caused as a result of defects in products which are chattels shall be recovered from their manufacturer or other person specified by law.

The Ukrainian Law On the liability for damage caused by product defects sets up the procedure and grounds for recovering damages caused to a person due to defects in products which are chattels. Recovery of damages does not depend on whether an aggrieved party and tortfeasor  are in contractual relations.

Within the meaning of the above law any person who suffered damage as a result of defects in products, either a direct buyer of goods, persons to whom the title in goods passed legally or third parties, may claim recovery of damages.

Article 1210 of the Ukrainian Civil Code sets forth that a manufacturer of goods or other person specified by law shall be responsible for damage due to defects in such goods. In accordance with Article 7 of the Ukrainian Law On the liability for damage caused by product defects any person who has imported into Ukraine goods for the purpose of sale, rent, and lease or for the purpose of distribution of such goods in any other form in the course of business activity shall be responsible as a manufacturer.

© Yuriy Karlash, English translation, 2017

© Yuriy Karlash, compilation, 2017