header-logo header-logo

Home Login E-newsletter About us
29 April 2010 / Andrew Burns KC
Issue: 7415 / Categories: Features , Insurance / reinsurance , Personal injury
printer mail-detail

Toxic sofas

© Copyright LexisNexis 2026. All Rights Reserved.

Andrew Burns examines the insurance angles of recent PI claims

The “Toxic Sofas” litigation involves personal injury claims against Land of Leather (LoL) and other retailers for selling defective furniture manufactured in China. On 26 April 2010 the High Court approved a matrix for calculating settlement payments to claimants wishing to settle. However a number of claimants had already lost their recovery claims against the insurers of LoL, Zurich Insurance. Zurich refused to pay as LoL had settled with the Chinese manufacturer without its consent. The claimants brought claims directly against Zurich under the Third Party (Rights Against Insurers) Act 1930 after LoL went into admininstration.

LoL argued that there was no intention to settle personal injury claims—only its own direct losses. Nothing had been paid for such a wide-ranging settlement, which would have been an unreasonable deal for LoL. In Horwood v Land of Leather & Zurich Insurance [2010] EWHC 546 (Comm) Mr Justice Teare said that even if a particular construction leads to an unreasonable result, the fact that an agreement was

If you are not a subscriber, subscribe now to read this content
If you are already a subscriber sign in
...or Register for two weeks' free access to subscriber content

MOVERS & SHAKERS

Read All
Sponsored by
Zylpha LogoClick to know more
NLJ Career Profile: Maryam Syed KC, Church Court Chambers

NLJ Career Profile: Maryam Syed KC, Church Court Chambers

From childhood dreams of the Bar to some of the country's most challenging cases, Maryam Syed KC explains why she has never stopped standing up for others

DAC Beachcroft—Richard Breavington, Rachel Ford & Daniel Guilfoyle

DAC Beachcroft—Richard Breavington, Rachel Ford & Daniel Guilfoyle

DAC Beachcroft significantly expands Cyber team, hiring three Cyber partners

Browne Jacobson—Professor Clive Kay

Browne Jacobson—Professor Clive Kay

Browne Jacobson appoints senior healthcare leader Professor Clive Kay as strategic adviser

NEWS
Read All
NLJ this week: Reframing family dispute resolution
As family justice moves further away from the courtroom, collaborative law is emerging as an increasingly important route to resolving separation disputes
NLJ this week: Employment law updates on restraints, representation & tribunal boundaries
A busy period for employment law is producing important lessons for employers, employees and tribunals alike
NLJ this week Civil way: Practical procedure lessons & cautionary tales
From forgotten interest claims to case-management appeals, a string of procedural developments offers useful—and occasionally cautionary—lessons for practitioners
NLJ this week: Fraud in the digital age

Jonathan Fisher KC highlights that it now accounts for around 40% of criminal offences, with roughly 70% involving technology, and argues that the UK cannot simply prosecute its way out of the problem. Detection, investigation and prosecution all require improvement, while different fraud types demand tailored responses.

NLJ this week: Right outcome, troubling reasoning?
How forcefully can a litigant criticise a public authority before robust advocacy crosses the line into unreasonable conduct? 
Copyright © 2026 LexisNexis
back-to-top-scroll