Trial date set in Diageo black mould court case

After a “lengthy and lamentable” process, a trial date has finally been set for drinks giant Diageo Vs Thomas and Gail Chalmers, who claim that a byproduct from Diageo’s distillery caused millions of pounds worth of damage to their home. 

Having first filed a lawsuit against Diageo in 2014, and again in 2017, plus having defended themselves against an appeal by the spirits giant in January 2024, Scottish couple Thomas and Gail Chalmers have finally secured a trial date in which they will seek to sue Diageo.

They claim that black mould, or to use its official term, Baudoinia compniacensis, generated by the distillation process at a nearby distillery, caused £40,000 worth of damage to their house. The Chalmers say that their home, including its exterior, patio, fencing and sundeck, is continually smothered in the fungus, and that they have spent considerable sums on having the property professionally cleaned. The mould feeds on alcohol vapours (or the ‘angel’s share’) from maturing barrels of Scotch whisky and can quickly spread.

The Chalmers, who live in Falkirk, Scotland, also claim that the damage allegedly caused by Bonnybridge whisky bond has devalued their property by 5-10%

Earlier this year Diageo lost its attempt to appeal with Lord justice clerk Lady Dorrian criticising the “lengthy and lamentable procedural history to the action”. She rejected Diageo’s appeal on the basis that its case was “irrelevant and lacking in specification”.

A trial date has now been set for March 2025.

“While disappointed with the decision taken by the court in January, we will continue to defend ourselves vigorously in these proceedings,” a spokesperson from Diageo said.

Landmark ruling

If the Chalmers win the case, it will be a landmark ruling and is likely to set a precedent for distilleries all over the world based in or near residential areas.

In June, the drinks business reported that residents in Aberdeenshire opposed planning permission for Snowdrop Developments to build a whisky storage facility in the area for a “mystery client”. There were concerns that local properties could become blighted by black mould. In this particular case, planning permission was granted nonetheless. However, if Diageo loses its case with the Chalmers in March 2025, local councils may think twice about rubber-stamping future applications.

The problem is by no means Diageo’s alone. Jack Daniel’s is also embroiled in a lawsuit, which saw construction halted on a new barrel warehouse being built due to black mould coating neighbouring houses, cars, trees and road signs in Lincoln County, Tennessee. The chancellor of Lincoln county, JB Cox, issued a court order temporarily stopping the building of the barrelhouse in March 2023.

According to reports, the company is planning the construction of 14 more warehouses on the site.