A toy company yesterday lost its multi-million-dollar battle against a manufacturer who churned out thousands of dolls described by an expert witness as potentially deadly. About 160,000 Bouncin' Babies were recalled from the United Kingdom, Switzerland, France, Austria, Canada and the United States, after laboratory tests revealed unacceptable levels of microbes, including the penicillin-like bacteria candida. The cocktail of micro-organisms covering the toys could have killed some of the children who played with them, an expert said earlier this year. Galco International Toys blamed manufacturer Kader International for the contamination. The toy company went to the High Court seeking US$5 million (HK$38.6 million) in loss and damages from Kader for the recall and loss of the product line. But Mr Justice James Findlay rejected Galco's claim, observing that it had insisted that each toy be water-tested. Bouncin' Babies are designed to cry and wet themselves. Galco had assured Kader there should be no problem with the tests if distilled water was used. 'I do not think that Galco had any right to expect Kader to know more about the microbiology of using distilled water to test dolls than they did,' the judge concluded. When mould was spotted on the toys in 1990, they were tested for contamination and withdrawn from sale. Water taken from sealed containers at Kader's Shenzhen factory was found to have very high bacteriological counts, the court heard earlier. Kader's representatives said Galco should have tested only a random sample of the dolls, and then discarded them. They also accused the toy company of using the micro-organisms as an excuse to dump an unpopular product line while forcing someone else to foot the bill.