Media Coverage
Source: Law Society Gazette
Media Coverage
09.05.12
In a recent article, Pillsbury partner Raymond Sweigart and senior associates Samuel Pearse and Amina Adam review a recent Court of Appeal decision in Chandler v. Cape, in which the court upheld a High Court decision. That decision held that a parent company owed a direct duty of care towards an employee of one of its subsidiaries to ensure a safe system of work. The decision has significantly expanded the potential liabilities of parent companies for their subsidiaries.
According to the authors, while Chandler should be noted by group companies, the court stressed that the duty of care from the parent company to the employee of one of its subsidiaries does not arise automatically. Therefore, whether the parent company has assumed direct responsibility for the employees of its subsidiary will be established on a case-by-case analysis. This will need to be watched closely and parent companies are advised to review both their present and historic operating procedures as well as their terms of insurance.