Toxic sofa compensation claims to be settled by insurer

Posted 27/04/2010

Home Retail Group’s insurers have agreed to settle a number of compensation claims related to chemicals used in sofas manufactured in China.

Thousands of people complained of skin irritations, eye complaints and breathing difficulties after buying new sofas.

It was subsequently discovered that the conditions may be related to the use of the antifungal chemical dimethyl fumarate in the sofas.

Solicitors proceeded to make compensation claims from the retailers’ insurers on behalf of the victims, in what is believed to be the UK’s biggest ever consumer group litigation.

More than 1,500 people have now been told they will receive compensation payments after insurers for Home Retail Group, the parent company of Argos and Homebase, admitted liability.

Insurers for several smaller retailers have also admitted liability and compensation payouts of between £1,175 and £9,000 will be made to more than 1,500 people in the coming weeks.

The High Court is due to consider a further 2,500 cases in which liability remains disputed at a hearing on May 21st 2010.

At an earlier hearing, Land of Leather’s insurer Zurich won a ruling that it would not have to compensate consumers who suffered injuries after buying the Chinese-made sofas from the failed retail chain.