When do UK-domiciled parent companies owe a duty of care to individuals affected by acts of their foreign subsidiaries?
This article discusses the significant Supreme Court decision in Okpabi v Royal Dutch Shell Plc(1) which considered parent company liability. This decision on jurisdiction provides helpful guidance on the circumstances in which a UK-domiciled parent company may owe a common law duty of care in respect of the actions of a foreign subsidiary. Facts The claimants, comprised of 42,355 individuals from the Niger Delta region, brought a claim in negligence against Royal Dutch Shell (RDS), incorporated in England, and one of its Nigerian subsidiaries, Shell Petroleum Development Company of Nigeria ...