Biffa Waste Services Ltd & Anor v Maschinenfabrik Ernst Hese GMBH & Ors

Biffa Waste Services Ltd & Anor v Maschinenfabrik Ernst Hese GMBH & Ors

Biffa is entitled to recover only those losses actually suffered as a result of the fire and delay. The court accepted Biffa's expert evidence on lost electricity sales and savings, but rejected claims for the MEH invoice and further uninsured costs as no actual loss would be suffered. The quantum is determined by reference to agreed and proven figures, with deductions for savings and only substantiated heads of loss allowed.

Parties
First Claimant: Biffa Waste Services Limited; Second Claimant: Biffa Leicester Limited; First Defendant: Maschinenfabrik Ernst Hese GMBH; Second Defendant: Outokumpu Technology Wenmec AB; Third Party: Vanguard Industrial Limited (Trading as Pickfords Vanguard) (in voluntary liquidation); Fourth Party: Hese Umwelt GMBH
Jurisdiction
England and Wales
Judgment Date
19 September 2008
Procedural Posture
Tort/commercial Construction Dispute / Quantum Hearing Following Liability Judgment
Outcome
Claim for damages by Biffa against OT allowed in part; MEH's claim for contribution against OT dismissed.
Legal Topics
Damages, Quantum Assessment, Mitigation of Loss, Contribution, Remoteness of Damage
Tort Commercial Law Construction Law Damages Quantum Assessment Mitigation of Loss Contribution Remoteness of Damage

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 3 Authorities cited 6 Party arguments 2 Amounts and remedies 9
Sign in to unlock

Parties

Biffa Waste Services Limited

First Claimant

Biffa Leicester Limited

Second Claimant

Maschinenfabrik Ernst Hese GMBH

First Defendant

Outokumpu Technology Wenmec AB

Second Defendant

Vanguard Industrial Limited (Trading as Pickfords Vanguard) (in voluntary liquidation)

Third Party

Hese Umwelt GMBH

Fourth Party

Procedural Posture

Tort/commercial Construction Dispute / Quantum Hearing Following Liability Judgment

Legal Issues

  1. 1 What sums are recoverable by Biffa from OT as damages for losses caused by the fire and the resulting delay?
  2. 2 Are specific heads of loss (lost electricity sales, lost recycled metal sales, savings, uninsured costs) recoverable and in what amounts?
  3. 3 Is Biffa entitled to recover the MEH invoice as additional uninsured costs from OT?

Ratio Decidendi

Biffa is entitled to recover only those losses actually suffered as a result of the fire and delay. The court accepted Biffa's expert evidence on lost electricity sales and savings, but rejected claims for the MEH invoice and further uninsured costs as no actual loss would be suffered. The quantum is determined by reference to agreed and proven figures, with deductions for savings and only substantiated heads of loss allowed.

Court Disposition

Claim for damages by Biffa against OT allowed in part; MEH's claim for contribution against OT dismissed.

Orders

  • OT to pay Biffa £140,249 as damages, apportioned as subsequently agreed or ordered.
  • MEH's claims against OT for damages or contribution dismissed.