Parent companies beware: you may still be liable

By Tom Pemberton and Volkan Palanci 2019-08-22T05:00:00

A cautionary tale for companies with subsidiaries operating overseas

The Supreme Court has recently held that a parent company based in the UK may assume liability for the acts or omissions of a subsidiary in another country, and the English courts may have jurisdiction over the resulting litigation, in circumstances where the claimants have limited access to substantial justice in that country. The case turned on a technical point of EU law concerning jurisdiction but has important implications for all parent companies whose subsidiaries are engaged in overseas projects.

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