Contractor's Liability for Defects in the Work and Reduced Fault of the Principal

Facts

Regatec Apparatebau AG (Regatec) manufactured a control panel for Technocrat AG, which was to be installed in a heating system of Fournier SA in Sion. However, the control panel had defects and could not be properly commissioned. Regatec therefore had to manufacture a second one at its own expense. Regatec then brought an action against Technocrat AG to obtain payment of the invoice for the first control panel as well as the costs related to the manufacture of the second one. Technocrat AG acknowledged part of the invoice but requested compensation for the consequential damages due to the defects.

Considerations

The Federal Tribunal partially upheld Regatec's appeal. It considered that the contractor's warranty for defects in the work is only excluded under Art. 369 CO if the principal maintains their instructions despite the contractor's warnings. However, when the principal has the necessary technical knowledge, the contractor is released from liability even if they did not issue a warning. In this case, the Federal Tribunal held that Regatec, as a specialized company, should have recognized the defects in the instructions provided by Technocrat AG and requested additional information. The Federal Tribunal therefore excluded a complete exoneration of Regatec's liability under Art. 369 CO.

Regarding the…