The High Court has ordered three furniture retailers to pay £20m to customers who received serious burns from sofas manufactured in China in what is thought to be the largest group litigation in UK legal history.

Mr Justice MacDuff ordered that 1,650 people, who suffered medical complaints due to the presence of Dimethyl Fumarate (DFM) in leather sofas manufactured by Chinese companies Linkwise and Eurosofa, should be compensated for their injuries. The group action was launched against Argos, Land of Leather and Walmsleys – all of whom admitted liability. Victims will receive payouts between £1,175 and £9,000, depending on the severity of their symptoms.

However, 350 customers of Land of Leather, which went into administration in January 2009 will miss out.

Although liability had been admitted, a decision was made by the retailer’s insurers, Zurich, not to pay out on claims relating to products made by the manufacturer Linkwise, citing a breach of their policy. This decision was upheld by the courts last month and is being referred to the Court of Appeal.

Richard Langton, senior litigation partner at Russell Jones & Walker and the solicitor who led the group litigation against the retailers in question said: “Many suffered serious health problems, simply because of the new sofa they chose. At the start there was a real fear factor as nobody knew the cause. The doctors took nine months to identify the chemical. Some people thought they had skin cancer or were dying.

“We believe many sofas are still in use with DMF in them. Anyone who develops symptoms should seek urgent medical advice. Anyone who has not registered a claim yet, should seek help as time is running out to bring a claim. ”

Legal proceedings are still ongoing for 3,000 cases where liability remains in dispute.

The EU has now banned the use of DMF after consumers in at least five European countries suffered skin burns and breathing problems due to the chemical used in numerous imported leather products.

Source -  The Post Online – 26.04.10