In a decision given on 15 May 2001, the French Supreme Court, "Cour de cassation", refused to enforce a liability disclaimer clause inserted in an IT provider agreement.
In this matter an IT provider, Cegid, whose main activity is software publishing, entered into an agreement with Samino, a clothing wholesaler. The purpose of the agreement was the supply of an IT system mainly composed of order management software.
After delivery of the system, Samino noticed a limitation in the functionality of the software: it was not possible to manage more than 999 items in the same size and colour which, given its activity as a wholesaler, was crippling.
Samino sued Cegid and obtained the cancellation of the agreement. Cegid was ordered by the Court of Appeal to pay damages to Samino. The Supreme Court confirmed this decision.
