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- The law on parent company liability is particularly relevant in the context of health and safety and environmental incidents; the substantial damages potentially available to claimants can make it attractive to pursue a wealthier parent company.
www.burges-salmon.com › news-and-insight › legal-updatesCourt of Appeal gives new guidance on parent company liability
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Jul 20, 2018 · The law on parent company liability is particularly relevant in the context of health and safety and environmental incidents; the substantial damages potentially available to claimants can make it attractive to pursue a wealthier parent company.
Jun 1, 2021 · Parent company liability: Supreme Court clarifies approach to jurisdictional challenges. Posted: 01/06/2021. The Supreme Court has reinforced the jurisdictional gateway through which claimants may bring claims in negligence against the parent company of an overseas subsidiary. In the case of Okpabi & Others v Royal Dutch Shell Plc & Another ...
The substantive message from the case law is that parent company liability is nothing special and may be based on the parent’s own behaviour or on failing to prevent damage caused by the subsidiary. However, this increase of the parent’s liability risks alone is not sufficient for effective human rights protection (section 6).
- Cees Van Dam
Feb 26, 2021 · “A parent company will only be found to be subject to a duty of care in relation to an activity of its subsidiary if ordinary, general principles of the law of tort regarding the imposition of a duty of care on the part of the parent in favour of a claimant are satisfied in the particular case.
Feb 26, 2021 · Parent Company Liability back in the Supreme Court. 26 Feb 2021. Parent Company Liability back in the Supreme Court. The English courts have become a popular destination for foreign claimants seeking damages from UK-domiciled parents for the alleged wrongful actions of their overseas subsidiaries.
Apr 19, 2022 · The Supreme Court has now unanimously confirmed in both Okpabi v Shell and its earlier decision in 2019 in Lungowe v Vedanta that parent companies can be held legally responsible for harms brought about by their foreign subsidiaries. The Court has also confirmed that the scope of such liability is much broader than previously understood.
Oct 23, 2018 · Abstract. According to a universal bedrock principle of corporate law, corporations have separate legal personality and limited liability. These principles apply equally to corporate groups. Accordingly, a parent company is normally not liable for legal infractions and unpaid debts of its subsidiaries.