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

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

MEH and OT owed Biffa Leicester and Biffa Waste duties of care in contract and tort not to cause loss consequential upon physical damage to the Ball Mill. The welding and grinding works were ultra-hazardous, rendering duties non-delegable. OT was vicariously liable for Pickfords’ negligence. However, contractual provisions (liquidated damages and limitation clauses) capped MEH’s liability to the sums specified, and the same cap applied to tortious liability. OT’s liability was not contractually capped. The fire and resulting delay were caused by the negligence of HU and Pickfords, for which MEH and OT are liable. The period of recoverable delay is 217 days (28 June 2004 to 31 January 2005).

Parties
First Claimant: Biffa Waste Services Limited; Second Claimant: Biffa Leicester Limited; First Defendant: Maschinenfabrik Ernst Hese GMBH (MEH); Second Defendant: Outokumpu Technology Wenmec AB (OT); Third Party: Vanguard Industrial Limited (Trading as Pickfords Vanguard) (in voluntary liquidation); Fourth Party: Hese Umwelt GMBH (HU)
Jurisdiction
England and Wales
Judgment Date
11 January 2008
Procedural Posture
Tort/contract—construction Fire Liability / Judgment After Trial on Liability and Certain Quantum Issues
Outcome
Judgment for claimants on liability; damages capped for MEH per contract; OT liable in tort; judgment against Pickfords and HU for indemnity/contribution; quantum reserved for further argument.
Legal Topics
Non Delegable Duties, Vicarious Liability, Liquidated Damages, Limitation of Liability, Negligence, Ultra Hazardous Activities, Contribution
Tort Contract Construction Law Non Delegable Duties Vicarious Liability Liquidated Damages Limitation of Liability Negligence +2 more

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Parties

Biffa Waste Services Limited

First Claimant

Biffa Leicester Limited

Second Claimant

Maschinenfabrik Ernst Hese GMBH (MEH)

First Defendant

Outokumpu Technology Wenmec AB (OT)

Second Defendant

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

Third Party

Hese Umwelt GMBH (HU)

Fourth Party

Procedural Posture

Tort/contract—construction Fire Liability / Judgment After Trial on Liability and Certain Quantum Issues

Legal Issues

  1. 1 Whether MEH and OT owed Biffa Leicester and Biffa Waste a duty of care not to cause loss consequential upon physical damage to the Ball Mill during welding and grinding works
  2. 2 Whether the works were ultra-hazardous and if so, whether duties were non-delegable
  3. 3 Whether OT was vicariously liable for Pickfords’ negligence

Ratio Decidendi

MEH and OT owed Biffa Leicester and Biffa Waste duties of care in contract and tort not to cause loss consequential upon physical damage to the Ball Mill. The welding and grinding works were ultra-hazardous, rendering duties non-delegable. OT was vicariously liable for Pickfords’ negligence. However, contractual provisions (liquidated damages and limitation clauses) capped MEH’s liability to the sums specified, and the same cap applied to tortious liability. OT’s liability was not contractually capped. The fire and resulting delay were caused by the negligence of HU and Pickfords, for which MEH and OT are liable. The period of recoverable delay is 217 days (28 June 2004 to 31 January 2005).

Court Disposition

Judgment for claimants on liability; damages capped for MEH per contract; OT liable in tort; judgment against Pickfords and HU for indemnity/contribution; quantum reserved for further argument.

Orders

  • MEH liable to Biffa Leicester and Biffa Waste for damages for breach of contract and negligence, liability capped by contract to liquidated damages.
  • OT liable to Biffa Leicester, Biffa Waste, and MEH for damages for negligence (not contractually capped).