Facts
On June 20, 1979, the Geneva Cantonal Compensation Fund notified [K.], [P.], and [L.], former directors of the bankrupt company X SA, that they were jointly and severally liable for the non-payment of AVS/AI/APG contributions in the total amount of 99,580.95 Swiss francs. [K.] and [P.] filed an administrative appeal against this decision, while [L.] also appealed.
The Geneva Cantonal Appeals Commission for AVS confirmed the joint liability of the three directors for the total amount. [K.] and [P.] then appealed to the Federal Insurance Court.
Considerations
According to the Federal Insurance Court, an employer who, intentionally or through gross negligence, fails to comply with the provisions regarding AVS and thus causes damage to the compensation fund, is liable for compensation under Art. 52 LAVS. However, this liability can be excluded if there are circumstances justifying the employer's faulty behavior or excluding intent and gross negligence.
In this case, the Federal Insurance Court considers that [K.] and [P.] committed a serious fault by deliberately leaving the compensation fund's claims unpaid, even though [P.] had tried to urge [K.] to pay the contributions. Their behavior was not justified by the need to save the…