Chandler v Cape plc [2011] EWHC 951 (QB) is a UK company law and English tort law

English tort law

English tort law concerns civil wrongs, as distinguished from criminal wrongs, in the law of England and Wales. Some wrongs are the concern of the state, and so the police can enforce the law on the wrongdoers in court – in a criminal case...

 case concerning the availability of damages for a tort victim from a parent company, when the victim is harmed by the operations of a subsidiary company.

Facts

David Chandler had been employed by a wholly owned subsidiary company of Cape plc from 1959 to 1962. Cape plc

Cape plc

Cape plc is a United Kingdom energy services company based in Uxbridge, West London. It is a constituent of the FTSE 250 Index.- History :The company was founded in 1893 as the Cape Asbestos Company with the objective of mining asbestos in the Orange Free State and importing it into European...

 manufactured asbestos. In 2007 Mr Chandler discovered he had asbestosis

Asbestosis

Asbestosis is a chronic inflammatory and fibrotic medical condition affecting the parenchymal tissue of the lungs caused by the inhalation and retention of asbestos fibers...

, however the subsidiary of Cape plc no longer existed, and it had no policy of insurance. Mr Chandler brought a claim against Cape plc alleging it should be jointly and severably liable to pay him damages. Cape plc contended it owed no duty of care to the employees of its subsidiaries.

Judgment

Wyn Williams J held that Cape plc owed Mr Chandler a duty of care, as the threefold test of foreseeability, proximity and it being fair, just and reasonable, was met according to Caparo Industries Plc v Dickman. Cape plc had had actual knowledge of the subsidiary employees' working conditions, and the asbestos risk was obvious. It had employed a scientific and medical officer to be responsible for health and safety issues, and Cape plc retained responsibility for ensuring its own employees, and those of subsidiaries were not harmed. Hence there was sufficient proximity, and a duty of care arose.