Albright & Wilson UK Limited v Biachem Limited and others Albright & Wilson UK Limited v Biachem Limited and others (conjoined appeals) (2002)

House of Lords, House of Lords (17 October 2002)

[2002] UKHL 37  

[2002] UKHL 37  

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Albright & Wilson UK Limited v Biachem Limited and others Albright & Wilson UK Limited v Biachem Limited and others (conjoined appeals) (2002)

HOUSE OF LORDS

Lord Nicholls of Birkenhead Lord Slynn of Hadley Lord Hoffmann Lord Hutton Lord Rodger of Earlsferry

OPINIONS OF THE LORDS OF APPEAL FOR JUDGMENT

IN THE CAUSE

ALBRIGHT & WILSON UK LIMITED

(RESPONDENTS)

v.

BIACHEM LIMITED (APPELLANTS) AND OTHERS

(APPELLANTS)

ALBRIGHT & WILSON UK LIMITED

(RESPONDENTS)

v.

BIACHEM LIMITED AND OTHERS

(APPELLANTS)

(CONJOINED APPEALS)

ON 17 OCTOBER 2002

[2002] UKHL 37

LORD NICHOLLS OF BIRKENHEAD

My Lords,

1. I agree that the appeal of Biachem Ltd should be allowed. A muddle occurred in the performance of two contracts. As a result, a tanker load of sodium chlorite being supplied by Berk to Albright & Wilson was delivered with the wrong delivery note. The documentation supplied related, not to the order of sodium chlorite from Berk, but to a different order: an order by Albright & Wilson for a tanker load of a different chemical, epichlorohydrin, from a different supplier, Biachem. Both loads were due for delivery on the same day and at the same factory: Albright & Wilson's Avonmouth works. Albright & Wilson is now seeking to recover damages for the loss flowing from the explosion which occurred when the load of sodium chlorite was mistakenly discharged into Albright & Wilson's store of epichlorohydrin at Avonmouth.

2. The documentation muddle became possible because, by chance, Berk and Biachem employed the same haulage contractor, Huktra, to deliver both tanker loads to Albright & Wilson's Avonmouth works. In turn, Huktra employed one subcontractor, Stevens, in respect of both loads.

3. Had Albright & Wilson advanced claims in negligence against Berk and Biachem, no doubt it would have been met with a plea that Albright & Wilson was itself guilty of contributory negligence when its employees at Avonmouth directed the tanker containing sodium chlorite to the tanks where the epichlorohydrin was stored. In order to avoid any such plea of contributory negligence being raised Albright & Wilson has advanced its claims against Berk and Biachem solely on the basis of loss arising from breach of contract. It has eschewed a claim based on a failure to exercise care, either in tort ...

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