No compensation in DMF row
18/03/2010
More than 300 consumers in the UK who suffered skin reactions after buying furniture from now-defunct retail chain Land of Leather will receive no compensation, the High Court has decided.
At a hearing in London, the judge ruled that Land of Leather's insurers, Zurich, should not have to pay compensation. Zurich argued that Land of Leather's decision to source leather sofas from only one manufacturer in China, in this case Dongguan-based LinkWise, breached the terms of its policy with the retailer.
The reaction on people's skin was caused not by the leather or the furniture itself, but by anti-mould agent dimethyl fumarate (DMF). The International Union of Leather Technicians and Chemists Societies (IULTCS) has made it clear that, to the best of its knowledge, the DMF problem is not from the leather. DMF is not used during the manufacture of leather articles, but it was placed in sachets that were put inside furniture, shoe boxes or other packaging material to inhibit mould that could otherwise harm the products during transport and storage.
IULTCS has said the fungicide is not used by any tanneries, and has not been used by the tanning industry to preserve finished leather.
Nevertheless, more than 4,000 people in the UK have experienced skin allergies, rashes and burns after using leather sofas bought from Land of Leather and two other retail groups, Walmsley Furnishing and Argos. EU manufacturers were already banned from using the chemical, and, on March 17 last year, the EU made a formal ruling (2009/251/EC) that prohibited products containing DMF from being made available on the market in the EU after consumers in at least five member states suffered skin burns and breathing problems due to the chemical.
Although all three UK retailers had previously admitted liability, Zurich announced in March 2009 that it would not provide insurance cover for Land of Leather claims.
Richard Langton, senior litigation partner at Russell Jones & Walker, the solicitor who is leading the group litigation against the retailers in question said: “This is a devastating blow for victims who purchased their sofas from Land of Leather, all of whom believed for almost 12 months that Zurich were going to pay out. A group of over 300 innocent people who sustained in many cases severe injuries, due to an admittedly faulty product, will receive no compensation. Consumers must beware that buying products made in China is potentially dangerous and if something goes wrong they have less chance of redress. Zurich’s delay in notifying us added insult to injury by making our clients believe they would be paid. Unless this decision is overturned on appeal a great injustice will have been done.”
The case continues for the several thousand customers where insurance cover remains in place. The court will look at a number of test cases in May.
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