TRANSNATIONAL LITIGATION CLAIMS AGAINST UK BASED MULTINATIONALS by Fiona Gill.

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Presentation transcript:

TRANSNATIONAL LITIGATION CLAIMS AGAINST UK BASED MULTINATIONALS by Fiona Gill

ESTABLISHING JURISDICTION Brussels Convention (Article 2) 1968 Spilida v. Cansulex

DUTY OF CARE “It is suggested that provided there is sufficient involvement in control over and knowledge of the subsidiary operations by the parent, there is no reason why the general principles of negligence should not apply so that in certain circumstances such a duty should exist”. Leigh Day & Co Nov 1999

AUSTRALIAN CASES CSR Ltd v. Wren Asbestos Products plc Ltd (AP) was wholly named subsidiary of CSR All AP directors were employees of CSR All management staff were employees of CSR CSR board meetings regularly reviewed AP business

CSR LIMITED - WREN CSR board approved acquisitions of plant and other items by AP “a close involvement … over and above that expected in the case of a holding company”

Ngcobo and Others v. Thor Chemicals Ltd Connelly v. RTZ Lubbe/Afrika and Others v. Cape plc Sithole v. Thor Chemicals Limited

NGCOBO AND OTHERS v. THOR CHEMICALS LIMITED 1987 Thor transfer mercury processing operation from Kent to South Africa 1992 SA investigation into mercury poisoning

1994/5Thor/Directors prosecuted in South Africa 1994Writ served in England April 95High Court refuses Thor’s application to stay on grounds of forum non conveniens

May 1995Defence served July 1995Writ served on behalf of further 17 Plaintiffs April 1997Ngcobo claims settled for £1.3m October 2000Sithole v. Thor

CONNELLY Employed by Rossing Uranium mine in Namibia 1986Laryngeal cancer diagnosed 1988Instructs solicitors in Scotland

1992Namibian application for Workmens compensation rejected 1993/94English solicitors instructed, legal aid obtained

Sept 1994Writ issued and served with Statement of Claim Oct 1994Defendants applied to stay Feb 1995High Court imposed stay

Aug 1995Court of Appeal upholds decision: legal aid cannot be taken into account Oct 1995High Court rejected application to lift stay May 1996Court of Appeal held conditional fee agreement a material change of circumstances and lifted stay

Aug 1997Court of Appeal upheld by House of Lords Oct 1997Defence served Jan 1999Claim struck out as time barred, leave to appeal refused

LUBBE v. CAPE PLC “control of the Company’s worldwide asbestos business in England and failure to reduce asbestos exposures to a safe level”

Feb 1997Writ issued : Lubbe and 4 others Mar 1997Application to stay Jan 1998High Court stayed proceedings July 1998 Court of Appeal lifted stay

11/01/99Defence served 18/01/99Afrika Writ: 1539 Claimants further Writs served

July 1999High Court stays : South Africa is the most appropriate forum October 1999Court of Appeal upholds the stay (High Court and Court of Appeal criticise Claimants’ solicitors tactics) July 2000House of Lords allows Claimants’ appeal

THE FUTURE Motivation: defunct or bankrupt subsidiaries Workmens compensation group actions higher damages in England legal aid, conditional fees human rights