Parent Companies Are Not Parents, Subsidiaries Are Not Children

Okpabi v Shell Judgment Puts the Brakes on the Expansion of Parent Company Liability for Damage Caused By Its Subsidiaries

A recent judgment of the England and Wales Court of Appeal addressed important jurisdictional questions in relation to a parent company’s liability for damages caused by its subsidiaries. The court did not rule on the merits of the claim; rather, it analysed the preliminary issue of whether UK courts have jurisdiction to hear such claims. In determining whether there is jurisdiction, however, the English court did have to examine substantive law issues. This makes the case of great interest to parent company liability, and, as parent company liability overlaps with supply chain liability, also to the latter. Continue reading “Parent Companies Are Not Parents, Subsidiaries Are Not Children”