Faulty Product? Replace It ASAP To Preserve Your Claim

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...