Malta Enterprise ordered to pay damages over factory damage

Ski-wear manufacturing company Bogner Sports was awarded €6,921.22 in damages after storm water seeping through an allegedly waterproofed ceiling, damaged their products.

In 4 September 2000, rainwater seeped into the sorting and storage sections at the factory's premises in Ricasoli, Kalkara. Items kept inside these two sections were severely damaged, together with a number of machines. As a result the company had to stop its production line for almost two days, as employees could not carry out their work.

The company had rented its premises from the Lands Department, knowing the roof was in need of maintenance and waterproofing. Prior to the September storms, Bogner Sports Limited signed an agreement with the Malta Development Corporation (forerunner of Malta Enterprise) over waterproofing works.

General Waterproofing Ltd were entrusted with the works. The works included the removal of old membrane and the laying of new waterproofing membrane. The work was estimated to take two weeks however due to a number of delays it was concluded at end of September.

Atlas Insurance Ltd, on behalf of Bogner Sports Limited, filed against MDC and General Waterproofing Ltd.

The Court heard how the waterproofing company assured MDC that in order to protect against water ingress after the old membrane is removed and until the new membrane is laid, the roof would be treated with liquid protection. However MDC refused the application of liquid protection in order to cut expenses.

During the removal of the old membrane, workers found considerable amounts of water trapped inside the membrane. The water needed to dry up, further delaying the waterproofing process. During the September storms, the roof was still not protected.

Court experts explained how on-site inspections revealed how new membrane was laid over the existing membrane, trapping water and air while not forming any adhesion to the roof. "This is not in line with good practice," the court-appointed expert and architect said.

Magistrate Marseann Farrugia said ME could not refuse its responsibility as the company had entered into an agreement with MDC, which in return contracted General Waterproofing Ltd.  The court awarded Bogner Sports Limited the amount of €6,921.22 in damages. Furthermore MDC and GWL were ordered to pay the legal fees.