The Free State of Bavaria suffered an extensive defeat in the legal dispute over the insolvency of the large butcher Sieber after a listeria warning in 2016.

In a judgment published on Tuesday, the Munich Higher Regional Court (OLG) awarded the insolvency administrator two-thirds of claims for damages against the Free State.

The exact amount of damage must now be determined by the district court, the insolvency administrator originally demanded around eleven million euros.

The district court had still dismissed the lawsuit.

In 2016, Sieber discovered listeria in juniper jerky – i.e. belly bacon.

The Robert Koch Institute then associated Sieber products with illnesses and deaths caused by these bacteria.

In May 2016, the Bavarian Ministry of Consumer Protection issued a press release warning against the consumption of Sieber products. The authorities also ordered a recall and temporarily banned the large butcher's production.

A few days later, Sieber filed for bankruptcy and 120 employees lost their jobs.

After the judgment of the Higher Regional Court, which was no longer contestable, the authorities were allowed and had to take action against Sieber.

However, shutting down production, a recall and warning customers were only justified if products could contain Listeria at all.

Court sees breach of duty

However, Sieber also sold post-pasteurized goods in the packaging, which cannot contain Listeria.

Since the order of the authorities also applied to these non-hazardous products, there was a breach of official duty.

However, the Higher Regional Court saw contributory negligence on the part of the then managing director.

He did not intervene sufficiently and did not sufficiently point out to the authorities that he also had harmless sausage products in his range.

Therefore, the Free State only has to replace two thirds of the damage.

In a first step, the insolvency administrator will now receive around 28,700 euros.

It's about deliveries of grilled sausages to a discounter that were recalled even though they were edible.

Any further damage must now be renegotiated.