Contract – Warranty. The claimant (Weatherford) issued proceedings against the defendant (Hydropath) for breach of warranty contained in the agreement to supply its product to prevent scale building up on the inside of pipes. Hydropath and the third party counterclaimed against Weatherford, alleging misuse of confidential information, breach of their licence agreement, inducing breach of contract and breach of directors' duties. The Technology and Construction Court dismissed the counterclaims. It further held that Weatherford had established that the product had been seriously and substantially in breach of the warranty in the supply agreement, given its possible propensity to cause sparking on the adjacent pipework.