Parent companies may owe a duty of care to their subsidiaries’ employees
The English Court of Appeal recently delivered a judgment in Chandler v Cape Plc  EWCA Civ 525 which has potentially significant implications for groups of companies. It is also a warning of contingent liabilities which might arise where a group company may have exposed employees to asbestos or other toxic substances. These liabilities may emerge many years after the alleged exposure to the toxic substance. Mesothelioma and other illnesses caused by exposure to asbestos can take decades to develop. For the unwary, the liability for damages to employees of subsidiary companies may be unexpected and potentially significant.
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