Summary of Recent Cases – Substantive Law


Parent Company Held To Owe Duty Of Care To Employee Of Subsidiary Company

Chandler v, Cape Plc, QBD, 14/4/11

Williams J held, on the facts of the instant case, that the defendant company owed a duty of care to an employee of its wholly owned subsidiary company. The claimant employee had contracted asbestosis after having been exposed to asbestos whilst employed by the subsidiary company between 1959 and 1962 and which company was no longer in existence nor had in place any insurance to indemnify against claims such as the claimants. Williams J held that the requisite three stage test of foreseeability, proximity and whether it was just, fair and reasonable to impose a duty on the parent company were satisfied. The parent company was aware of the claimant’s working conditions and the risk of contracting asbestosis was foreseeable in circumstances where the company was in the business of manufacturing incombustible asbestos. Moreover, the parent company employed a scientific officer and a medical officer with responsibility for health and safety issues thus giving rise to the requisite proximity between the defendant and the claimant.

May 16, 2011 В· Editorial Team В· Comments Closed
Posted in: Cases