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03 May 2012
Issue: 7512 / Categories: Legal News
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Judgment extends duty of care

Court of Appeal: parent companies are accountable for the activities of their subsidiaries

Parent companies are accountable for the activities of their subsidiaries, the Court of Appeal has held in a ground-breaking judgment.

David Chandler brought a claim after he contracted asbestosis as a result of a short period of employment more than 50 years ago with Cape Building Products Ltd, which is no longer in existence. Its parent company, Cape Plc, still exists. For Chandler’s claim to succeed, his lawyers needed to show Cape Plc owed a direct duty of care to the employees of its subsidiary to provide a safe system of work.

Giving judgment in Chandler v Cape Plc [2012] EWCA Civ 525, Lady Justice Arden said: “We understand that this is one of the first cases in which an employee has established at trial liability to him on the part of his employer’s parent company, and thus this appeal is of some importance not only to the parties but to other cases.”

Vijay Ganapathy, senior solicitor at Leigh Day & Co, who represented Chandler, says: “It’s no longer an excuse for parent companies to hide behind an aged legal principle in circumstances where they know that workers are at risk, but still choose to do nothing to help them.

“This is of particular relevance in asbestos disease cases, as many sufferers face insurmountable challenges in identifying and locating insurers for their former employers. As parent companies are much more likely to survive over the decades it takes for asbestos disease to develop, it should give hope to those now suffering that past negligence will not go unpunished.”
 

Issue: 7512 / Categories: Legal News
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MOVERS & SHAKERS

Gateley Legal—Jack Kelly

Gateley Legal—Jack Kelly

Gateley Legal expands Midlands residential development team

Gibson Dunn—Richard Surtees

Gibson Dunn—Richard Surtees

Gibson Dunn adds employee benefits and executive compensation practice in London with partner Richard Surtees

Laytons ETL—Alec Cameron

Laytons ETL—Alec Cameron

Laytons ETL appoints new partner and head of intellectual property disputes

NEWS
A series of recent decisions has clarified important principles across property law, from perpetuities to lease renewals and public rights over land
Employers cannot rely on wellbeing services alone to defend workplace stress claims after a High Court decision awarding almost £1m to an overworked employee
Andy Burnham's brand of 'Manchesterism' could offer fresh thinking on legal aid and access to justice if it reaches Westminster, according to Roger Smith, NLJ columnist and former director of JUSTICE
The constitutional fallout from a change of prime minister, rather than the politics, is under scrutiny as questions arise over the limits of executive authority in a leadership transition
The legal profession is undergoing a fundamental shift from selling services to creating technology-enabled products, according to Professor Luke Mason, Head of School of Law at Regent's University London
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