Chandler v Cape Plc

Chandler v Cape Plc

A parent company will owe a duty of care to the employees of a subsidiary where the businesses are in a relevant respect the same, the parent has superior knowledge on health and safety, the subsidiary's system of work is unsafe as the parent knew or ought to have known, and the parent knew or ought to have foreseen reliance by the subsidiary or its employees on the parent's expertise. In this case, Cape PLC assumed responsibility for the health and safety of Cape Products' employees, and was liable for the systemic failure to prevent exposure to asbestos dust.

Parties
Respondent: David Brian Chandler; Appellant: Cape PLC
Jurisdiction
England and Wales
Judgment Date
25 April 2012
Procedural Posture
Civil Appeal / Appeal From High Court Judgment
Outcome
Appeal dismissed
Legal Topics
Duty of Care, Parent Company Liability, Assumption of Responsibility, Negligence, Health and Safety at Work
Tort Law Company Law Duty of Care Parent Company Liability Assumption of Responsibility Negligence Health and Safety at Work

Case Brief

Summary, issues, holding and outcome

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Parties

David Brian Chandler

Respondent

Cape PLC

Appellant

Procedural Posture

Civil Appeal / Appeal From High Court Judgment

Legal Issues

  1. 1 Whether a parent company (Cape PLC) owed a direct duty of care to the employees of its subsidiary (Cape Products) to advise on, or ensure, a safe system of work
  2. 2 Whether Cape PLC was in breach of any such duty

Ratio Decidendi

A parent company will owe a duty of care to the employees of a subsidiary where the businesses are in a relevant respect the same, the parent has superior knowledge on health and safety, the subsidiary's system of work is unsafe as the parent knew or ought to have known, and the parent knew or ought to have foreseen reliance by the subsidiary or its employees on the parent's expertise. In this case, Cape PLC assumed responsibility for the health and safety of Cape Products' employees, and was liable for the systemic failure to prevent exposure to asbestos dust.

Court Disposition

Appeal dismissed

Orders

  • Judgment for the respondent (Mr Chandler) against Cape PLC
  • Cape PLC held liable for breach of duty of care to Mr Chandler