Individual Components Are Goods But Not Bespoke System As A Whole

Trebor Bassett Holdings Ltd & Cadbury UK Partnership v ADT Fire & Security plc [2012] EWCA Civ 1158

ADT supplied, for £9,000, a fire suppression system for Trebor's popcorn plant (Trebor is a subsidiary of Cadburys). A fire developed in a hopper, ADT's system did not put it out, the fire spread and the entire manufacturing plant, including Cadbury's adjacent chocolate confectionary production lines, dissolved into a sticky mess and was destroyed. Trebor/Cadburys sued in contract and tort. The High Court found that the design of the system was negligent, in that ADT had failed to use reasonable care and skill in the design. However, the Judge also found that Cadburys was negligent, indeed "woefully at fault" and "even reckless" in its failure to segregate the oil pop production area from the rest of the building and to install sprinklers. Since the contractual duty of ADT was co-extensive with its tortious duty, the Judge applied Section 1 of the Law