Brewery company Whitbread plc is seeking £1.5m compensation from the manufacturers of a floor-sealing product. It is claiming that food in its Manchester distribution warehouse had to be destroyed because of chemical contamination.
Whitbread contends that contactor Taylor Contractors Plant & Construction, of Warrington, Cheshire, used the sealer Proseal on a new concrete floor in one of the freezer chambers in the warehouse without realising that the product should not be used near food.
The claimant argues that the instructions for Proseal did not carry warnings that it released fumes that could be absorbed by food even if the food were wrapped in polythene, cellophane, cardboard or other materials. It believes that Armorex Ltd, the Watchmead-based manufacturer of Proseal, was aware that Proseal should not be used near food or where cross-circulation of air between food storage areas was possible.
The company estimates losses of £1,188,272 for the contaminated foods, £27,643 for landfill costs, £2,205 for consultants’ costs and £13,065 for engineering costs. It also claims that it suffered business interruption losses of £347,026, including loss of profit to Pizza Hut, the loss of renting out one of the freezer chambers, and increased costs.
Whitbread, which has been paid one-half of its claim for damages by Taylor Contractors, is seeking the balance of £789,105.50 from Armorex. Taylor Contractors is also suing Armorex for £789,105.50, the compensation that it paid to Whitbread.
References: PLS News 13/5/03
