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
NLJ Career Profile: John McElroy, London Solicitors Litigation Association

NLJ Career Profile: John McElroy, London Solicitors Litigation Association

From first-generation student to trailblazing president of the London Solicitors Litigation Association, John McElroy of Fieldfisher reflects on resilience, identity and the power of bringing your whole self to the law

Clarke Willmott—Elaine Field

Clarke Willmott—Elaine Field

Planning and environment team expands with partner hire in Manchester

Birketts—Barbara Hamilton-Bruce

Birketts—Barbara Hamilton-Bruce

Firm appoints chief operating officer to strengthen leadership team

NEWS
Read All
NLJ this week: Sanctions ruling casts ‘wide net’ over global finance
A landmark Supreme Court ruling has underscored the sweeping reach of UK sanctions. In NLJ this week, Brónagh Adams and Harriet Campbell of Penningtons Manches Cooper say the regime is a ‘blunt instrument’ requiring only a factual, not causal, link to restricted goods
NLJ this week: England’s courts cement status as fraud battleground
Fraud claims are surging, with England and Wales increasingly the forum of choice for global disputes. Writing in NLJ this week, Jon Felce of Cooke, Young & Keidan reports claims have risen sharply, with fraud now a major share of litigation and costing billions worldwide
NLJ this week: Mazur ruling puts firms on supervision alert
Litigators digesting Mazur are being urged to tighten oversight and compliance. In his latest 'Insider' column for NLJ this week, Professor Dominic Regan of City Law School provides a cut out and keep guide to the ruling’s core test: whether an unauthorised individual is ‘in truth acting on behalf of the authorised individual’
NLJ this week: Landlords’ forced entry powers spark legal divide
Conflicting county court rulings have left landlords uncertain over whether they can force entry after tenants refuse access. In this week's NLJ, Edward Blakeney and Ashpen Rajah of Falcon Chambers outline a split: some judges permit it under CPR 70.2A, others insist only Parliament can authorise such powers
NLJ this week: Push to scrap ‘vague’ public office misconduct law
A wave of scandals has reignited debate over misconduct in public office, criticised as unclear and inconsistently applied. Writing in NLJ this week, Alice Lepeuple of WilmerHale says the offence’s ‘vagueness, overbreadth & inconsistent deployment’ have undermined confidence
Copyright © 2026 LexisNexis
back-to-top-scroll