Where someone develops asbestos-related problems, their only means of recovering compensation is normally by pursuing their former employers. A recent case has, however, confirmed that it is possible to pursue a parent company, in certain circumstances.

In the case of David Chandler v Cape Plc, Mr Chandler had worked for a company called Cape Building Products Limited (“CBP”). This company was a subsidiary of Cape Plc, a well known company in the asbestos industry. Mr Chandler developed asbestosis. It was not disputed that he had come into contact with asbestos during his time at CBP but unfortunately for Mr Chandler, CBP did not have any records of insurers during the period in which he worked for them.

Mr Chandler instead brought a claim against the parent company, Cape Plc. He argued that, as a parent company, they were similarly liable to him and they should have ensured that he was not exposed to asbestos. He argued that they had knowledge of his working conditions and the fact that he was regularly working with asbestos.

The court agreed with Mr Chandler and ordered that Cape Plc should pay him the sum of £120,000 as compensation for the fact that he had developed asbestosis. The court found that the relationship between CBP and Cape Plc were such that Cape Plc had a duty to protect the health and safety of employees such as Mr Chandler.

This is an important and helpful case. In pursuing asbestos claims, there are often difficulties encountered in tracing insurers of companies who have long since ceased trading. The ability to pursue a parent company in such circumstances is potentially of great advantage to asbestos victims.