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Secretary of State for Health and Social Care v Primer Design Limited & Anor

30 April 2024
[2024] EWHC 1071 (TCC)
High Court
A company supplied faulty COVID-19 tests. The government sued. Both sides' experts agreed the tests often failed, but disagreed on *why*. The judge said it was too early to decide who was at fault, letting both sides provide more evidence from their experts before the full trial.

Key Facts

  • Secretary of State for Health and Social Care (Claimant) sued Primer Design Ltd and Novacyt S.A (Defendants) for breach of contract concerning the supply of COVID-19 testing kits.
  • The contract valued at £175 million, involved the supply of 6,300 Exsig COVID-19 testing kits per week for 14 weeks.
  • The claim alleged breaches related to the kits' sensitivity, compatibility with specimen types, and a high rate of invalid test results indicated by Internal Extraction Control (IEC) values exceeding 26.
  • Experts from both sides largely agreed on the high failure rate of the tests but disagreed on the cause of the failures (flawed kits versus external factors like user error or software issues).

Legal Principles

Breach of contract for defective goods requires demonstrating the existence of a defect, not necessarily its cause.

Various authorities cited by Mr. Heppinstall KC (section 25)

Expert reports should ideally be limited to matters of genuine disagreement after a without-prejudice meeting; however, providing further context to agreed points is acceptable if helpful to the court.

TCC Guide paragraph 13.6.3 and Judge's interpretation of the CMC order (sections 10, 36)

Outcomes

Summary judgment for the Claimant was refused.

The court found that the Defendants had a real prospect of successfully arguing that the high failure rate resulted from factors other than defects in the kits themselves, such as user error or software issues. The joint expert statement, while showing a high failure rate, did not definitively establish the cause.

The Defendants' application for an extension to file a full expert report (including agreed matters) was granted.

The court considered a full report from the Defendant's expert would be more helpful to the court's understanding of the issues, especially considering the Claimant's expert's report's possible incompleteness and the need for fair cross-examination.

The Claimant was given an additional two weeks to file a further expert report in response.

To ensure fairness, given the extension granted to the Defendants, and to allow the Claimant's expert to address points raised in the Defendant's report.

Permission was granted for the Defendants to submit a further short statement from Dr. Birnie at trial.

The statement addressed a factual point (viscosity of the optimiser) relevant to the case and that the Defendants hadn't anticipated needing to address before.

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