The way in which industrial disease claims are handled may be different in the future following a potentially-landmark case heard at the Court of Appeal.
David Chandler took legal action against Cape - the parent company of the firm he worked for more than 50 years ago - on the grounds he is now suffering from asbestosis.
The 71-year-old said he came into contact with asbestos during his time operating in a factory of one of Cape's subsidiaries and his initial claim for damages failed on the grounds the company had gone out of business some years ago.
However, Lady Justice Arden has since ruled that Mr Chandler is entitled to £120,000 in compensation from Cape's insurers, regardless of whether or not the company is still operational.
This therefore means that organisations with subsidiaries may have to alter their internal structures on the basis they could be held responsible for industrial diseases contracted by their employees.
Lady Justice Arden commented: "This case demonstrates that in appropriate circumstances the law may impose on a parent company responsibility for the health and safety of its subsidiary’s employees."
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Posted by Chris Stevenson