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Retired Employee Wins Industrial Disease Compensation From His Employer’s Parent Company

June 13, 2012 by  Filed under News


A victim of asbestosis has acquired a hefty compensation after he won an historic case against Cape Plc at the Court of Appeal. The verdict sets a new case law where the parent company can be held responsible if the subsidiary company’s employees suffer due to the company’s negligence. The Court of Appeal, after long assessment and investigation, found out that Cape Plc, the parent company, is discernibly responsible for the activities of Cape Building Products Limited, its subordinate company. The no win no fee solicitors representing Cape Plc made an appeal to establish that it is not the responsibility of the parent company to pay off for the breach of duty of its subordinate firm, but the Court of Appeal rejected the appeal.

To recapitulate the whole story, Mr. Chandler worked for Cape Building Products Ltd from 1959 to 1962. His job responsibilities compelled him to work in an environment in which he was exposed to asbestos dust. Due to constant exposure to asbestos dust, he developed asbestosis, a serious lung disease, in 2007. However, Cape Building Products Ltd existed no more in 2007 and it had no insurance to pay the compensation claimed. Chandler filed an industrial disease claim against Cape Plc, the parent company, and at the trial, the court found that the parent concern was in no way less responsible for causing the disease. Thus, to pay for Chandler’s loss, the court ordered Cape Plc to pay compensation for his ailment.

The lawyers of Cape Plc tried to defend the company but failed to convince the judge. The judge delivered a verdict that stated at in situations where a parent company like Cape Plc has an in-depth knowledge about the health and safety standards of a workplace and has had the liberty to intervene in the work operations of its subsidiary firm, the parent company has the duty to take care of the health and safety issues of the workers of the subsidiary company.
After the court hearing and delivery of the verdict, Mr. Chandler said that he is very happy with the judgment. His claimed that the compensation earned would help him to pay his medical expenses and hospital bills. The judge claimed that the injured workers of the uninsured or dissolved enterprises who previously failed to find somebody to pay their claim will be happy by this judgment.

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