A Limerick firm which provides heating units for converting poultry manure to energy is suing a Dutch company for €3.6 million over alleged defects in heat exchange systems supplied to it.

Biomass Heating Solutions Ltd (BHSL) of Kantoher Business Park, Co Limerick, claims it was put to additional expense and loss of profits totalling €3.6 million as a result of having to repair the alleged defects in equipment supplied by Geurts International BV of Leiden, Netherlands.

BHSL bought heat exchange systems from Geurts which were then incorporated into BHSL units supplied to UK poultry farmers. They work by burning poultry manure which is turned into hot water or steam which is then used to heat the farm or, secondarily, to produce electricity.

BHSL claims that defects in the Geurts heat exchange systems became apparent around December 2016.

It says it spent €2.6 million on repairing those defects, including the use of third party contractors, additional or replacement parts, staff costs and customer claims against BHSL. It estimates it lost a further €1 million in profits.

Jurisdiction

It also says Geurts brought a claim against BHSL in the Netherlands for payment of just over €1 million for money alleged to be owed by the Irish firm.

BHSL denied it owed anything and challenged the jurisdiction of the Dutch courts to deal with the matter.

BHSL says the Court of the Hague had last May declined to allow the matter to be dealt with in the Netherlands jurisdiction.

Following that decision, BHSL brought Commercial Court proceedings here against Gueurts over the alleged €3.6m losses and expenses.

The case was admitted, on consent of the sides, to the fast-track commercial list by Mr Justice Robert Haughton and adjourned on the basis of agreed directions for progressing it.