hedwards: ...
In this case, I don't think the clinic can really be faulted as the implants had been approved for that use. Really, the regulatory agency ought to be on the hook for some of that trouble.
I think it will go like this.
This clinic is liable to the customer and has to compensate him for any unexpected faults.
The manufactorer is liable to the clinic and has to compensate the clinic for any unexpected faults.
The clinic can rely on any approval agency. Should it turn out that they were careless then you can surely sue them. Only in Europe the height of such compensations are greatly limited.
If it turns out that the manufactorer fooled the approval agency then the agency is out of the game but now the manufactorer would even be on criminal charges. Then the bosses could go to jail.
Anyway if the manufactorer is bankrupty the clinic is misfortunate because the hope of getting the money back they have to spend for compensating the customers is very low then. In this case maybe the clinic could have gotten an insurance against such cases. Or it just has to select the providers more carefully, maybe double-checking the quality, ...
But you're right. This should not have happened. Somebody made a mistake/crime and this person should pay for it - in a good system.
However it is impractical if all the customers would sue the manufactorer directly. Instead let the retailer, last contract partner do it. Also that adds a value to be last contract partner.
The other way around if the clinic goes bankrupty, then of course customers could directly sue the manufactorer, since it is their faulty material.
Only in the case that both, clinic and manufactorer go out of business then the customer should pay for himself/herself.
But then the NHS pays presumably. I don't really like it. I don't really like to socialize the costs of aesthetic surgery but this is different - it's basically like an illness/health threat through no fault of one's own. So it's okay to be covered by the NHS which in turn can try to get the costs back from the clinic which in turns can sue the manufactorer if he is still available.