English Court of Appeal Rules on Claims Brought by Foreign Plaintiffs, Against Foreign Defendants, for Conduct Outside the U.K.
Two recent judgments of the English Court of Appeal (the Court of Appeal) have shed light on the approach of the U.K. courts towards civil actions taken against parent companies for wrongs allegedly committed by foreign subsidiaries abroad.
Both cases concerned the responsibility of parent companies for actions of their subsidiaries and the jurisdictional rules for taking claims in the U.K. arising from facts occurring in other countries. They provide interesting perspectives on the traditional doctrine of separate corporate personality and the principle of forum non conveniens in common law. Both cases are consistent with one another, and the second case sheds more light on the factual links between a parent and subsidiary which may give rise to a duty of care vis-à-vis third parties who are affected by the actions of the subsidiary.READ MORE