A legal tussle between a logistics company and its local Fire
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Authority could have tough financial implications for some warehouse operators around the UK. Late last month City Logistics was at the Court of kppeal in London, where it was hoping to lave an earlier High Court judgment against t reversed. A fresh interpretation of the tequirements for a fire certificate by Vorthamptonshire Fire 8c. Rescue Service NFSERS) suggests City has greater responsi)ilities than it believed with respect to the iafety systems installed in its high-racked singleitorey warehouse in Northampton—the company has been told that its building must have Trinklers to qualify for a fire certificate.
Although there are specific types of buildings where sprinkler systems are required, warehouse owners in general have not been required to install them, with most owners Dperating under the belief that the current EPA legislation is primarily designed to msure that people in a warehouse or building can get out safely before the building is mnsumed by fire. Until now, fire safety offizers have followed a similar policy.
New considerations However, the interpretation of law has moved on since these regulations were drafted 30 years ago. New considerations such as loss of premises, surrounding damage, and risk to firefighters are all being debated in this case. The legal debate over City Logistics warehouse has looked at the responsibilities of the warehouse operator from many different points of view, including moral and environmental considerations. The court will have to ecide which of these issues are relevant; hat is not at issue is the nature of the goods
the warehouse.
"'We don't have dangerous goods here," Moira Myers, senior partner at Myers , ley, the Hertfordshire firm of solicitors reiltesenting the operator. "We have goods that are wrapped in plastic, like many other warehouses. The City Logistics premises is an average warehouse with high-bay racking and goods stored on racking, with no more than 30 employees. We have demonstrated scientifically that with ventilation systems, sophisticated smoke alarms and so on, the employees can get out of that building in plenty of time without sprinklers.
Myers warns that the structure of the fire precautions legislation in this country will be fundamentally shifted if the Fire Authority point of view prevails.
"He [the fire officer] is saying that it is not right that the building should be allowed to burn down, and that it is not right that, by allowing it to do so, it might cause damage to adjoining buildings and to the environment," she explains. "He is also saying that he thinks that it is not right that there is no regard for the firefighters who might be asked to attend a fire at the site."
At present there are more than Jo° UK acts and statutes relating to fire safety, and
there are several different systems of enforcement. The relevant legislation in this case is the Building Act 1984; the Building Regulations 1991; The Fire Precautions Act 1971; the Fire (Safety and Safety of Places of Sport) Act 1981; and the Home Office Guide to Fire Precautions (generally referred to as the "blue book").
Ian Gough, divisional officer at NF&RS, emphasises that the FPA legislation is 30 years old and the world—and building construction—has moved on since then. He adds that the fire risks involved with high. rack single-storey buildings these days require more careful deliberation: "Each building must be risk assessed and all the circumstances of each case must be considered before a sensible action plan is agreed.
"We wouldn't have blanket rules on sprinklers, but if a risk assessment says the place could go up in minutes, then that is outside the guidance and other things would have to be looked at. We are saying to City Logistics that we are not happy that opening up some additional ventilation in the roof gives enough time. It might give more time to get their people out, but it doesn't give us time to get in."
The health and safety of the firefighters who attend blazes is one of the key points being contested.
The full legal arguments from both sides are too complex for debate here, but it is worth considering some implications if the eventual result goes against City Logistics.
One outcome could be a review of the criteria used in inspections already made by fire officers around the UK. It could mean that some warehouses would have to be reinspected according to the new interpretation. It could also mean that these warehouses would have to be equipped with sprinkler systems before new fire certificates were issued.
While this is a worst-case scenario, the cost implications for the warehouse operators concerned would be considerable.
Roger Williams is director-general of the United Kingdom Warehousing Association (UKWA), which represents about 8o% of third-party warehousing operators in the UK. About 40% have either a fire certificate, or are exempt, and of these only about 8% have sprinkler systems installed. So the result of the ruling could affect a significant number of them. "The problem is not just about the cost of installing the retrofit sprinlder systems," Williams points out. "Some of the older buildings would not be sound enough. The capital investment required to bring them up to the standard capable of dealing with the installation would be significant."
There are no authoritative figures for the percentage of warehouses that are equipped with sprinkler systems, but Stewart Kidd, secretary-general of the British Automatic Sprinkler Association, says his best guess is that around 2o% of all large warehouses (over 2,000rret) have them. The figure increases to 6o% if very large (ro,000 zm) warehouses are included.
Alan Winterbottom has first-hand experi ence of the consequences of fire damage and the precautionary process that takes place in its aftermath. He is managing director of Manchester-based Bergen Transport, a UK and international container transport operator with warehousing facilities. Just over two years ago a warehouse fire seriously disrupted the business and half of the warehouse has had to be rebuilt. The question of sprinkler systems was discussed following the fire.
Storage tanks
"You need quite a large storage tank to operate the sprinklers and we did not have the room," he says. "It was thought better to subdivide the warehouse with fire walls—a move suggested by the customer that took most of the warehouse space and suffered most of the damage to its goods."
Winterbottom adds that in addition to the cost of installing the sprinkler system, there is also its upkeep to consider. It has to be serviced regularly and periodically drained, cleaned and repainted.
NF8c.RS doubts that the impact of a successful re-interpretation would affect many warehouses. It says its legal stand has the future in mind, adding that there are few warehouses in Northamptonshire, for example, that would require a re-visit in the event that the decision eventually goes its way.
"Warehouses only need a certificate if they fall under the auspices of the Factories Act and are deemed to be factories [as in the case of City Logistics]," says Gough. In areas of the country where warehouses are common, he says local acts already require sprinklers to be installed or small compartments to be made.
Leicestei shire, Hampshire, Berkshire, Merseyside, London and Greater Manchester all enforce local rules on this.
When debating potential fire risks, it doesn't take long before questions about the influence on insurance premiums are raised.
Tony Gardiner is a director of specialist haulage insurance broker Davis Group. He does not attempt to quantify how retrofit installation would affect insurance premiums, but concludes; "It should be borne in mind that fire is only one of the eventualities that the insurers will be covering. There is still theft, accidental damage and pilferage, for example. Although a fire can cause the lot to be lost, the fire risk is only a proportion of the overall risk that the insurer will provide cover for."
• Earlier this month the Court of Appeal heard the arguments again: its written judgment is expected soon.