Warranty Liability in the Contract of Works: Analysis of Order No. 16075 of 2024

The recent Order No. 16075 of June 10, 2024, issued by the Court of Cassation, offers an important clarification on warranty liability in the context of private works contracts. In particular, the ruling focuses on the collateral obligation to pay social security and remuneration treatments for workers, establishing the rights and duties of the client in case of default by the main debtor.

Regulatory and Jurisprudential Context

The issue addressed by the Court is based on Article 29, paragraph 2, of Legislative Decree No. 276 of 2003, which establishes that the client has a warranty liability for the payment of remuneration and social security contributions. This provision has been subject to different interpretations over the years, and the ruling in question clarifies that this liability does not imply joint ownership of the contribution debt, but a warranty liability.

• The client is not jointly liable for the payment of the subcontractor's remuneration and social security debts.
• In case of default, the client may take recourse against the main debtor.
• The warranty liability is activated only after the client has fulfilled their payment obligation.

Works Contract - Collateral obligation to pay social security and remuneration treatments pursuant to art. 29, paragraph 2, Legislative Decree No. 276 of 2003 - Nature - Warranty liability of the jointly liable party - Default by the main debtor - Consequences. In the matter of private works contracts, the collateral obligation to pay social security and remuneration treatments for workers does not create joint ownership of the contribution debt but the "warranty liability" of the jointly liable client, pursuant to art. 29, paragraph 2, of Legislative Decree No. 276 of 2003; consequently, the aforementioned, after having satisfied the credit, in case of default by the employer, may take recourse against the latter for the entire amount paid.

Implications for the Parties Involved

This ruling has a strong impact on both clients and subcontractors. Indeed, the client must be aware that, although not jointly liable, their warranty liability still implies a significant burden. On the other hand, subcontractors must pay attention to their financial situation and compliance with social security obligations to avoid penalties.

Conclusions

Order No. 16075 of 2024 represents a step forward in clarifying responsibilities in works contracts. It is essential that all parties involved understand their obligations and the associated risks to ensure the correct execution of contracts and to avoid future disputes. Case law continues to evolve, and each new ruling contributes to outlining an increasingly clear and precise regulatory framework.