Abstract
The regulation of nanotechnology has been relatively well covered by policy-makers and academic commentators. Surprisingly, the potential impact of civil products liability has been less explored and yet, in an innovative industry sector, this should be of crucial concern to businesses and policy-makers generally. This paper explores this in the light of the EU Products Liability Directive. It explores the nature of risks and develops a new terminology to differentiate risks according to whether they are totally unexpected risks, potential but still unexpected risks, or suspected identified defects (either due to a characteristic of the product related to the defect or by analogy with another nanoproduct). The perhaps startling conclusion is that the more unknown a risk is the more likely a product containing it is to be found defective. However, the uncertainty surrounding this new area of science may give some leeway for the narrow development risks defence and that may have implications for the liability exposure of nanotechnology industries in those states that have chosen to exclude the development risks defence.
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Notes
However, it should be remembered that redress is also possible under Sale of Goods Directive 99/44, where development risks do not apply; although the redress is only against the seller (not the producer) and in a few systems it may be difficult or impossible to recover for consequential personal injury damages arising for breach of sales law.
This is a popularized version. When you seek more detail it links to SCHENHIR report which is written in technical language.
A v National Blood Authority [2001] 3 All ER 289.
A v National Blood Authority [2001] 3 All ER 289, at para. 56.
Directive 85/374/EEC Article 7(d)
The rejection of such defence by the US Supreme Court: Wyeth v Levine, 129 S. Ct. 1187.
A v National Blood Authority [2001] 3 All ER 289.
Proposal for a Council Directive Relating to the Approximation of Laws, Regulations and Administrative Provisions, of The Member States Concerning Liability for Defective Products, Art 1, OJ 1976 C 241/9.
In fact during discussions on the Directive insurers had been confident that insurance would be available.
European Commission v United Kingdom C-300/95 [1996] ECR I-2649.
Indeed there is an interesting question of whether the Directive can impose liability on the basis of the defendants having a duty to have undertaken further research: see Mildred (2005) op cit at 187. Probably this has to be addressed through negligence law.
A v National Blood Authority [2001] 3 All ER 289.
Cour d’Appel, Paris, 23 September 2004, N° 02/16713, D 2005, 1012 gave a far more generous interpretation of the defence. However, that judgment was so generous that it was surely not correct and the decision itself was overturned by the Cour de Cassation on the ground that the defence did not apply as the Directive had not been implemented in France Cass. civ. 1e, 15 May 2007, n°05-10.234, D 2007, 1592.
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Howells, G. Product Liability for Nanotechnology. J Consum Policy 32, 381–391 (2009). https://doi.org/10.1007/s10603-009-9115-8
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DOI: https://doi.org/10.1007/s10603-009-9115-8