Sofa rash victims left stranded as compensation claims fail

The group took action after buying sofas from now-defunct Land of Leather chain which left them exposed to the banned chemical dimethyl fumerate (DMF).

But yesterday Mr Justice Teare, sitting at the High Court in London, ruled the claimants were not entitled to compensation from Zurich Insurance, Land of Leather's insurers.

More than 4,000 claimants say they suffered rashes, burns and allergies after buying the sofas, manufactured in China by several firms including Linkwise, from Land of Leather, Walmsley Furnishing and Argos.

European Union manufacturers were already banned from using DMF – which has also since been banned from use in imported products after consumers in at least five EU countries suffered skin burns and breathing problems.

All three retailers have admitted liability, but last year Zurich announced it would not provide insurance cover for Land of Leather.

Richard Langton, a senior litigation partner at law firm Russell Jones and Walker who is heading the compensation fight, described the ruling confirming the announcement as a "devastating blow".

He said: "A group of over 300 innocent people who sustained in many cases severe injuries, due to an admittedly faulty product, will receive no compensation.

"Consumers must beware that buying products made in China is potentially dangerous and if something goes wrong they have less chance of redress.

"Zurich's delay in notifying us added insult to injury by making our clients believe they would be paid. Unless this decision is overturned on appeal by the Court of Appeal a great injustice will have been done."

Court action will continue for others who did not buy their sofas from Land of Leather. The Court will look at test cases in May as the first step to compensating those who were injured.

Problems caused by the sofas emerged in 2007. It is claimed the chemical – inserted in sofas to prevent mould – turns into a toxic gas which, when exposed to heat, can pass through clothes and cause rashes.

One claimant from Rotherham spent 700 on a pair of three-seat and two-seat sofas from Land of Leather but within weeks began to suffer rashes on the back of her legs, her back and her bottom.

She fell asleep one night on the sofa only to find a rash across her scalp and face when she woke.

A spokeswoman for Zurich said the judgment confirmed that Land of Leather breached "fundamental terms" of its insurance policy with them.

"Consequently, the policy does not provide an indemnity in respect of claims by customers who unfortunately suffered allergic reactions to leather sofas manufactured by the Chinese company Linkwise and containing the mould inhibitor DMF," she added.

She said it remained committed to the prompt resolution of claims unaffected by the ruling.

"As the group litigation in relation to such claims is ongoing, it is not appropriate to make further comment at this time."