'Toxic sofa' firms to pay out £20m

Lawyers say a chemical in the sofas, which were made in China and sold by retailers including Argos and Land of Leather, left consumers with injuries ranging from skin burns to severe eye complaints.

Some of the symptoms were so serious that customers believed they were dying or suffering from skin cancer.

The case against the retailers, led by a law firm with offices in Yorkshire, is believed to the largest consumer group litigation in UK legal history.

A High Court judge in London heard yesterday lawyers had reached an agreement that paves the way for "swift" payouts for many victims.

Mr Justice MacDuff was told that a claims handling agreement had been reached which could potentially benefit between 1,500 and 2,000 claimants.

He heard that the agreement did not resolve the whole of the litigation surrounding the purchase of the sofas, but that it would open the way to swift compensation for many hundreds of people.

After the hearing, law firm Russell Jones & Walker (RJW) released a statement which revealed that about 1,650 victims would receive combined payouts totalling up to 20m.

RJW, which has offices in Sheffield and Wakefield, led the group action against retailers Argos, Land of Leather and Walmsleys, all of whom admitted liability. The firm said successful claimants could expect to receive between 1,175 and 9,000, depending on the severity of their symptoms.

But some customers of Land of Leather, now in administration, may miss out as another High Court judge previously ruled that they were not entitled to compensation from the company's insurers, Zurich Insurance.

That ruling is to be challenged in the Court of Appeal, and legal action is still continuing in 3,000 cases where liability remains in dispute.

It is claimed that victims suffered injuries because of the presence of a "highly sensitising" chemical called dimethyl fumarate, or DMF, which was found in leather sofas manufactured by Chinese companies Linkwise and Eurosofa.

Solicitors say the European Union has banned the use of DMF after customers in at least five European countries suffered severe burns and breathing difficulties.

Problems caused by the sofas emerged in 2007. It is claimed that DMF – 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 buttocks.

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

A senior litigation partner at RJW, Richard Langton, said: "Many suffered serious health problems, simply because of the new sofa they chose.

"At the start there was a real fear factor as nobody knew the cause.

"The doctors took nine months to identify the chemical. Some people thought they had skin cancer or were dying.

"We believe many sofas are still in use with DMF in them. Anyone who develops symptoms should seek urgent medical advice."