Facts
Zbrojovka Brno, a Czechoslovakian state-owned enterprise, delivered twenty hydraulic presses to the buyer Fritz Richter in Liechtenstein, some of which were defective. Richter filed a claim to deny Zbrojovka Brno's demand and asserted that he was entitled to a total claim for damages of CHF 190,323.17 due to the defects.
The Cantonal Court of St. Gallen partially upheld Richter's claim and ruled that Zbrojovka Brno owed him CHF 65,000 in lost profits, as his customers had no longer accepted further presses from the defendant due to the defective delivery.
Zbrojovka Brno appealed this part of the judgment, as it was of the opinion that it was not responsible for the defective manufacture of the machines by the Vltavsky Machine Factory.
Considerations
The Federal Supreme Court dismissed Zbrojovka Brno's appeal and confirmed the judgment of the Cantonal Court. It stated that the buyer's claim for damages due to the delivery of defective goods exists in addition to the claim for compensation for the reduced value of the item and does not require the rescission of the purchase.
Contrary to Zbrojovka Brno's view, the damage may also consist in the buyer losing profits because his customers no longer accept further products of the seller due to the defective delivery. The…