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England and Wales High Court (Technology and Construction Court) Decisions |
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You are here: BAILII >> Databases >> England and Wales High Court (Technology and Construction Court) Decisions >> Stoke-On-Trent College v Pelican Rouge Coffee Solutions Group Ltd [2017] EWHC 2829 (TCC) (09 November 2017) URL: http://www.bailii.org/ew/cases/EWHC/TCC/2017/2829.html Cite as: [2017] EWHC 2829 (TCC) |
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BUSINESS AND PROPERTY COURTS IN MANCHESTER
TECHONOLOGY AND CONSTRUCTION COURT
1 Bridge Street West, Manchester M60 9DJ |
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B e f o r e :
SITTING AS A JUDGE OF THE HIGH COURT
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STOKE-ON-TRENT COLLEGE |
Claimant |
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- and - |
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PELICAN ROUGE COFFEE SOLUTIONS GROUP LIMITED |
Defendant |
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Jonathan Mitchell (instructed by Kennedys Law LLP, Sheffield) for the Defendant
Hearing dates: 9, 10, 11, 12, 17 October 2017
Draft judgment circulated: 2 November 2017
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Crown Copyright ©
His Honour Judge Stephen Davies
His Honour Judge Stephen Davies:
Contents
1 | Introduction | 1 - 4 |
2 | The witnesses | 5 - 10 |
3 | The facts: | 11 |
3.1 | The site | 12 - 20 |
3.2 | The relationship between the parties | 21 - 33 |
3.3 | The drinks vending machine | 34 - 43 |
3.4 | Maintenance visits in December 2009 | 44 - 64 |
3.5 | The fire the CCTV and other evidence | 65 - 86 |
4 | The cause of the fire: | |
4.1 | The competing causes | 87 - 90 |
4.2 | The defendant's criticisms of the claimant's case | 91 - 107 |
4.3 | The claimant's criticisms of the defendant's case | 108 - 112 |
4.4 | Cause of the fire discussion and conclusions | 113 - 118 |
5 | Breach of the contractual duties owed by the defendant to the claimant discussion and conclusions | 119 - 123 |
5.1 | Breach of contractual duty of care | 124 - 130 |
5.2 | Breach of contractual duty to supply goods of satisfactory quality | 131 - 135 |
5.3 | Breach of other contractual duties | 136 |
6 | Breach of statutory duty under the Electrical Equipment (Safety) Regulations 1994 | 137 - 160 |
7 | Causation | 161 - 168 |
8 | Conclusions | 169 - 170 |
1. Introduction
2. The witnesses
3. The facts
3.1 The site
3.2 The relationship between the claimant and the defendant
(a) By clause 1, Springbank agreed to provide from a specified date "free on loan vending equipment to the [defendant] at locations to be agreed by both parties. In return for a three year contract." The reference to a three year contract is clearly a reference to the terms which follow, contained in clauses 2 and 3 of the operating agreements, rather than to a separate agreement, since no-one has suggested that there was any other or more formal relevant agreement ever entered into.
(b) Under clause 2(b) it was said that the vending machines would be rebuilt vending machines, other than in certain prestigious locations where the parties might agree that new vending machines should be provided. There is no suggestion that a new - as opposed to a rebuilt - drinks vending machine was ever supplied at this location.
(c) Under clause 2(c) Springbank agreed to provide a "full operating and technical service to the equipment within 4 hours". This is, effectively, a full re-stocking and maintenance service. By the time of the fire the maintenance system which was in operation involved a 4-hour response time if the vending machine was reported as being out of operation ("down") but not if operational (sometimes referred to as "degraded").
(d) Under clause 2(d) Springbank agreed to undertake "responsibility for insurance on all equipment sited", although it also reserved the right to "relocate equipment where unreasonable abuse of machine has occurred". There was no further indication as to what insurance cover was being referred to and no evidence that there was ever any further discussion or agreement in that respect.
(e) Under clause 3, entitled "commercial agreement", it was agreed that the claimant would receive a specified "guaranteed net rebate" payment each year together with a further fixed payment for every drink sold from the vending machines installed at its premises above a specified number
3.3 The drinks vending machine
(a) The machine was a metal unit with an opening door. There were no metal vents in the top, but there were metal vents to the rear. There was an opening in the front at mid-low level where the drinks dispenser was located and a smaller opening also in the front at mid-low level where the coin slot was situated. There were flammable plastic fittings externally down the front of the machine and also inside the machine, particular the containers in which the ingredients such as tea and coffee were stored. The machine was set up to dispense hot drinks and carbonated (fizzy) cold drinks, the latter through a chiller carbonator unit, although the evidence is and I accept that by the time of the fire the latter had been decommissioned as the commercial preference was to sell cans of carbonated cold drinks through the snack vending machine. Behind the front door there was a compartment where plastic cups were stored. The front door was locked but as I have said could be opened with a key in order to gain access to restock the machine or for maintenance. There was no seal at the base so that any liquid spilled internally could escape onto the floor in front.
(b) Internally there were a number of electrical components, including a number of mains 240V components which would have been energised at the time of the fire. Thus there was a mains control board and power unit at high level, supplied by the mains supply entering the unit at mid-level. There was a mains power supply running down the unit to a common rail at mid-level into which separate power sources were plugged. This would include a mains power supply which supplied the chiller carbonator unit located at low level, albeit that as I have said I accept that this was disconnected at the time of the fire. It also included a mains power supply which supplied a ventilation fan, located at mid-level. There was also a mains power supply from the distribution board to the boiler at high level and a mains power supply to the door lighting circuit (albeit again there is evidence which I accept that the lighting bulbs had been removed by the time of the fire so that no current was flowing albeit the circuit remained energised) as well as a mains power supply to the control panel in the door at high level. The remaining circuits were 24V or less, with the only one permanently energised being that running from the control panel to the input selector on the front of the unit.
(c) The water supply also entered the unit at mid-level, from where it was piped up via a solenoid controlled filter to the header tank at high level and from there either into the boiler to produce hot water for hot drinks or down to the chiller carbonator unit for producing cold drinks. The hot water from the boiler was piped laterally to the boiler valves, controlled by solenoids, from where it was piped down to the individual mixing decks and into the mixing bowls at the front of each mixing deck, in which it was mixed with the ingredients dispensed from the ingredient vats above (using a low voltage motor to power a rotating screw) to produce the different hot drinks offered. Hot water was piped separately down to the tea brewer located below the header tank. In each case a low voltage whipper motor was needed to power the mixing bowls. The finished product would then be piped down to the drink dispenser at the front of the machine where it would be dispensed into the plastic cups stored behind the front door.
(d) Upon opening the front of the machine one would see the ingredient vats and mixing chambers at high level and then a tea brewer and drip tray at mid-level, below which there was the chiller carbonator unit and a bucket to collect any escaping water at low level. The drip tray was fixed onto the common rail at the rear of the machine; its purpose was to ensure that any leaking water from above that level was collected and fed into the bucket at low-level, which had a ball valve which would operate to cut off the water supply if it was at risk of overflowing.
(e) In order to see and gain access to the electrical and water parts referred to above it would be necessary to remove the ingredient vats, revealing a back plate which then also had to be removed to gain access to those parts.
(f) The experts agree that the electrical wiring and components in general and the 240V wiring and components in particular are always a potential source of incendive fault. They also agree that the lower voltage wiring and components present less of a risk, especially those which are only energised when the machine is in use. It is also common ground that the electrical equipment is protected by fuses and circuit breakers such that any incendive fault would have to develop before either the fuse or the circuit breaker operated to shut down the electricity supply. Moreover, the machine contains a number of safety features such as an over-temperature sensor and a drain pipe for the boiler and the float for the water bucket.
3.4 Maintenance visits in December 2009
3.5 The fire - the CCTV and the other evidence
4. The cause of the fire
4.1. The competing causes
4.2. The defendant's criticisms of the claimant's case
(a) [D3/72-3] "if, for example, my Lord, the fan had failed or something of this nature, the plastics of the fan or some other component could have ignited and then fallen on to something else such as the papers that we know were within the machine and started a smouldering fire or indeed possibly if the fan had overheated it might have even burnt a hole through one of the vats and started a smouldering fire in the contents. A smouldering fire can take a very long time to develop into a flaming fire; it depends on the nature of the materials and the ventilation that's available."
(b) [D3/83] "Well, a smouldering fire -- depending on ventilation and proximity of materials and the rate at which materials are consumed, a smouldering fire can suddenly erupt into a flaming fire."
(c) [D3/75-6] "One possibility is that the fire I mentioned -- the fire started around the water inlet solenoid or perhaps the ventilation fan or the heater and then something has dropped down and started smouldering in the papers you can see were consumed in the fire.
Q. But, Mr Braund, in order to get into something that smoulders, if it's paper, the paper is going to burn.A. A wad of papers won't just go up like a single sheet of paper.Q. But the papers have then got to burn or smouldering paper sitting in the base of the machine ... there's a huge gap above that paper before it meets anything else that's combustible, isn't there?A. In an empty machine, that would be the case, but in this machine we don't know, we already know there were quite a few things kept in there. So we just don't know and I'm -- you know, I'm quite satisfied that it's possible that we've had a fire smouldering inside the machine.
"It doesn't automatically follow that a plastic will automatically ignite if you burn a hole through it. If Mr Ryles is correct that somehow these vats are made from a special plastic which is fire retardant, it's easy to understand how a hole might be melted in it and ignite the contents without the plastic igniting."
"If we look at the contents of the vat, we need an electrical fault that creates enough energy, really, to burn into that vat and heat the contents of the vat so they smoulder. The only material that we have that's really capable of doing that would be, for example, an overload on one of the motors that drives the mixing chamber because that's the only thing that's close enough to do it. So that would have to be a strong overload that doesn't operate the fuses on the low-voltage system, is able to get energy into the vat, and able to create a smoulder in there. But that heat has got to somehow travel all the way through from the motor to the vat and yet avoid the other components in the area, and particularly the drinks carousel, which closes up right against it. Then it's also got to travel to where the mains wiring is in order to operate the circuit-breaker. So we're not talking about some small source of heat just creating a smoulder, we're talking about a very significant amount of heat and from something that shouldn't be operating at the time, which creates a smoulder and operates a circuit-breaker. So in practical terms, I cannot see how that can happen."
"The alternative would be something falling to the floor and creating a smoulder in any paper materials on the floor. But again, the fault has got to deliver a large amount of energy into something to get that to smoulder and then drop down to the floor, so a brief spark from an electric circuit won't do that. You would need a constant stream of sparks or you would need to have really heated something up to a great deal to get that to drop down, and then again, while that has dropped down and created the smoulder, this large heat source has then attacked the mains wiring and caused a circuit-breaker to operate."
"The smouldering in the papers on the floor would have to spread through those papers to a point where it meets some other material, plastic material, that is more easily ignitable because at that stage there is sufficient air around to support flaming fire, it's just that the fire hasn't got going with enough vigour. So it would have to find something else that can ignite more readily, heat that up, and then get that to ignite, and then we would start with a flaming fire in the base of the machine.
JUDGE DAVIES: Yes. So to take -- I think this could be purely hypothesis, but so I can understand: if there was a paper bundle on the floor and next to it there was a pile of plastic cups, then if the smouldering paper came -- or the smoulder in a paper got to the plastic cups, then that would have the potential to cause a flaming fire, and then that would have the potential to spread more widely?
A. Yes.
JUDGE DAVIES: On your analysis, there would have to be something else at that stage for the smoulder to turn to a fire?
A. Yes, my Lord."
4.3. The claimant's criticisms of the defendant's case
4.4. Cause of the fire discussion and conclusions
5. Breach of the contractual duties owed by the defendant to the claimant discussion and conclusions
(1) s.13 that where, in a contract for the supply of a service the supplier is acting in the course of a business, there is an implied term that the supplier will carry out the service with reasonable care and skill.
(2) s.9(2) that where, under a contract where one person in the course of a business bails goods to another by way of hire, there is an implied condition that the goods supplied under the contract are of satisfactory quality.
5.1 Breach of contractual duty of care
(a) Failure of maintenance on 15 and 22 December 2009
(b) Failure to undertake a regular system of preventive maintenance
5.2 Breach of contractual duty to supply goods of satisfactory quality
5.3 Breach of other pleaded contractual duties
6. Breach of statutory duty under the Electrical Equipment (Safety) Regulations 1994
"219. Howmet's claim for breach of statutory duty is based on regulation 14(1) of the Electrical Equipment (Safety) Regulations 1994 ("the 1994 Regulations"). That imposes a statutory duty not to supply electrical equipment in respect of which the requirements of regulations 5(1) and 9(1) of the regulations have not been satisfied. Regulation 5(1) concerns safety and regulation 9(1) requires products to carry a CE mark.
220. Regulation 5(1) provides that electrical equipment shall be safe. Section 41(1) of the 1987 Act makes the contravention of any obligation imposed by safety regulations actionable in civil proceedings. It is common ground that the thermolevel falls within the voltage thresholds in regulation 4.
221. The definition of "safe" is to be found in section 19(1) of the Consumer Protection Act 1987. This provides that:
"'safe', in relation to any goods, means such that there is no risk, or no risk apart from one reduced to a minimum, that any of the following will (whether immediately or after a definite or indefinite period) cause the death of, or any personal injury to, any person whatsoever, that is to say-(a) the goods;(b) the keeping, use or consumption of the goods;...(e) reliance on the accuracy of any measurement, calculation or other reading made by or by means of the goods,and 'unsafe' shall be construed accordingly."222. By Regulation 3(1) of the 1994 Regulations the reference to risk in that subsection is to be construed as including a reference to any risk of damage to property."
"12. Regulations 9(1), 10 and 11 shall not apply in relation to electrical equipment which
(a) has previously been supplied to any end user; or
(b) is supplied solely by virtue of its being hired out whether in connection with the supply of other goods and services or otherwise provided that it satisfies the provisions of sub-paragraph (a) above."
"Where any goods have at any time been supplied by being hired out or lent to any person, neither a continuation or renewal of the hire or loan (whether on the same or different terms) nor any transaction for the transfer after that time of any interest in the goods to the person to whom they were hired or lent shall be treated for the purposes of this Act as a further supply of the goods to that person."
"Electrical equipment which satisfies the safety provisions of harmonised standards shall be taken to comply with the requirements of regulation 5(1) above unless there are reasonable grounds for suspecting that the electrical equipment does not so comply."
7. Causation
"The application of this approach by a court in considering a claim under the Consumer Protection Act 1987 in respect of a defective product can often be simpler. Under ss.2 and 3 of the Act if a person is injured by a product, his claim succeeds if he establishes there is a defect in the product and that defect caused the loss unless the defendant can rely on one of the statutory defences. In determining whether the loss or injury has been caused by a defect or by some other cause, although the process of reasoning may involve an explanation of how the defect was caused, the task of the court is simply to determine whether the loss was caused by the defect and not by another cause. As is apparent from the first of the appeals, that distinction is important and can make the task of the court a simpler one, as no doubt Parliament intended."
"27. The extent to which "positive or scientific proof of causation" is required must be a matter of judgment in each case and depends on the evidence as a whole. There is also a significant difference between, on the one hand, relying on inference to establish both breach of duty and causation of loss and, on the other hand, relying on inference to find a causal connection between proven breach of duty and ensuing loss.
28. In the absence of any positive evidence of breach of duty, merely to show that a claimant's loss was consistent with breach of duty by the defendant would not prove breach of duty if it would also be consistent with a credible non-negligent explanation. But where a claimant proves both that a defendant was negligent and that loss ensued which was of a kind likely to have resulted from such negligence, this will ordinarily be enough to enable a court to infer that it was probably so caused, even if the claimant is unable to prove positively the precise mechanism. That is not a principle of law nor does it involve an alteration in the burden of proof; rather, it is a matter of applying common sense. The court must consider any alternative theories of causation advanced by the defendant before reaching its conclusion about where the probability lies. If it concludes that the only alternative suggestions put forward by the defendant are on balance improbable, that is likely to fortify the court's conclusion that it is legitimate to infer that the loss was caused by the proven negligence."
8. Conclusions