W Lamb Ltd (trading as The Premier Pump & Tank Company) v. J Jarvis & Sons PLC

In 1991 Tesco opened a superstore at Cleethorpes, Humberside, which included a petrol filling station. The filling station was completed on 10 October but unfortunately by early December customers were complaining of water contamination of the petrol. Some pipes were replaced in March 1992 but leaks continued to develop and in the spring of 1993 the whole of the so-called "suction" pipework carrying fuel from the storage tanks to the outlet stands was taken up and replaced, without cost to Tesco.

The Defendant was the main contractor for the construction of the superstore and the Plaintiff was its subcontractor for the supply and installation of the storage tanks and pipework at the filling station. Each blames the other for the faults which developed and contends that the other must bear the full cost of the remedial works.

The contract to construct the superstore was originally obtained by a company called J A Elliott, but in March 1991 it was placed in administrative receivership and the contract was novated to the Defendant by an agreement dated 22 may 1991. The design, supply and installation of fuel tanks, pipework and pump fittings for the filling station was sub-contracted to the Plaintiff.

Work under the sub-contract commenced on 21 June 1991 and was completed on 10 October 1991.

The complaints from customers in early December 1991 already mentioned led to investigations, and they resulted in an order from the Defendant to the Plaintiff dated 27 February 1992 to break out and replace a limited number of pipes. That work was done, starting on 2 March and lasting two weeks. The Plaintiff's charges for it are part of its claim in this action.