Builder Roy Smythe will also have to pay 'substantial' legal costs after being found negligent by a judge at Manchester county court for putting the bag out for collection.
The National Consumer Council said most people did not realise they were liable in such circumstances. A spokesman for the Association of British Insurers said it was the first time it had heard of such a claim, but that a claim for such damages would be covered by any standard household insurance policy.
Leonard Coulson cut himself on glass poking through the plastic bag as he loaded it on to the refuse lorry after collecting it from Mr Smythe's house in Warrington, Cheshire, eight years ago. He had surgery but was left without any feeling in one finger and very little in another. He took Mr Smythe to court for negligence and the resolution of the case came after the Court of Appeal ordered a retrial.
A spokesman for Unison, which funded Mr Coulson's claim, said legal costs to be met by Mr Smythe were likely to be 'substantial'.