In a judgement that could have far-reaching ramifications for UK companies with subsidiaries, the Court of Appeal has ruled in favour of an asbestosis sufferer, who sought damages against the parent company of his former employer.
The Court upheld a decision by the High Court in April last year, which ruled that Cape plc, as the parent company, was liable for the activities of its subsidiary, Cape Building Products Ltd. The appeal judgment, handed down last week (25 April), could have significant consequences for companies in the UK with domestic-based subsidiaries, as well as multi-national companies headquartered in the UK with subsidiaries in developing countries, where their operations have greater potential to cause direct harm to workers, the local environment, and consumers.
The case centered around David Chandler, 71, who was employed by Cape Building Products Limited (formerly Uxbridge Flint Brick Company), between 1959 and 1961, during which period he suffered heavy asbestos exposure. Diagnosed with asbestosis in 2007, he was unable to pursue a claim against Cape Building Products, owing to an ‘asbestosis exclusion clause’ in its insurance policy. Mr Chandler’s lawyers, Leigh Day & Co, instead decided to pursue his claim against Cape plc.
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Parent firm liable in “historic” asbestos case - news-content | SHP - Safety and Health Practitioner
