Howmet Ltd v Economy Devices Ltd [2016] EWCA CIV 847
In this case, the question was posed as to whether a manufacturer/supplier of a defective product can escape liability if the party who has suffered damage as a result of the defect became aware of the defect before that damage occurred and decides to continue to use the product?
The answer is that it is established law that product manufacturers owe a duty of care to the end-user if the product is defective and that leads to damage to property. However, in the above case, the manufacturer had a lucky escape.
A factory owner, Howmet, had fire safety devices installed in a number of tanks. Economy Devices manufactured those devices. One of the devices failed on two separate occasions causing fires which were both extinguished before any harm was done. However, realising that the device was obviously faulty, Howmet continued to use that device until a replacement was ordered and fitted but in the meantime introduced their own human-based fire avoidance systems.
Before the new device had been installed, the same faulty device failed and a fire destroyed the factory causing £20m worth of damage. However, when Howmet sued Economy Devices for their loss, the Judge at first instance (and reaffirmed in the Court of Appeal thereafter) found that although the device in question was faulty the Claimant had had knowledge of the defects and had reverted to relying upon a human-based safety system. Therefore it could not be said that the failed device had been a cause of the fire.
Practical tip:
If you become aware of a faulty product and continue to use it voluntarily you normally give up your right to claim for damage flowing from that defective product. Replace the product ASAP!
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
