INTRODUCTION
In Okpabi v Royal Dutch Shell plc, the UK Supreme Court examined a claim in the law of tort against the parent company of an overseas subsidiary. The case involved allegations of serious environmental pollution and damage caused by oil leaks in the Niger Delta from pipelines and associated infrastructure operated by the defendant’s subsidiary company (SPDC); an exploration and production company incorporated in Nigeria. Such claims are far from straightforward, and indeed the Okpabi litigation continues. It does raise, however, a significant question for private law – to what extent should the law of tort hold parent companies responsible for torts that have taken place overseas for which their subsidiaries are responsible? This is what I call in this article ‘the parent company problem’: how to justify holding a multinational corporation responsible for torts that may have taken place thousands of miles away in the course of their subsidiary’s activities? …
€ (Westlaw)
Paula Giliker, ‘Solving the “parent company problem”: should parent companies be held directly or vicariously liable for the torts of their subsidiaries?’ (2026) 42(3) Professional Negligence 99-117.
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