Cases - Nitrigin Eireann Teoranta v Inco Alloys Ltd

Record details

Name

Nitrigin Eireann Teoranta v Inco Alloys Ltd

Date

[1992]

Citation

1 WLR 498

Keywords

Contract administration

Summary

This case concerned an explosion in a chemical plant following the escape of methane gas from a pipe supplied by the defendants. The gas escaped from a crack in a section of pipework in 1984, but the same section had in fact cracked (but was repaired) in 1983. Proceedings were not issued until 1990. The defendants argued that limitation ran from the time of the first incidence of cracking (i.e. in 1983) with the result that the proceedings were time-barred.

The court held that the first incidence of cracking, being damage to the pipe itself, constituted 'pure economic loss' (as opposed to damage to 'other' property) and thus no cause of action arose. However, the later incidence of cracking was causative of physical damage to 'other' property (i.e. to the plant surrounding the pipe), and a cause of action first accrued when this actionable damage occurred. Consequently, proceedings had been brought in time.