On 10 April 2019, the UK Supreme Court handed down its judgment in Vedanta Resources PLC and anor. v Lungowe and others [2019] UKSC 20; a long awaited decision on parent company liability and the jurisdiction of English courts over transnational torts. This blog sets out the key findings and practical implications of the judgment,
Category Archives: Business and Human Rights
Subscribe to Business and Human Rights RSS FeedBudha Ismail Jam, et al, Petitioners v. International Finance Corporation
Introduction On 27 February 2019, the Supreme Court of the United States (SCOTUS) held that International Organisations do not have absolute immunity under the International Organizations Immunities Act of 1945 (IOIA). This blog discusses the opinion of the Supreme Court.
The Modern Slavery Act: stricter reporting requirements on the horizon
MPs commissioned by the UK Government to review the Modern Slavery Act have published an interim report on the Transparency in Supply Chains Provision in s.54. This blog looks at some of the key recommendations and what they would mean for UK business. The MPs were asked: “how to ensure compliance and drive up the
Jabir and others v. KiK Textilien und Non-Food GmbH – Dortmund court dismisses lawsuit
Yesterday, the Regional Court (Landgericht) of Dortmund dismissed the claims in Jabir and others v. KiK Textilien und Non-Food GmbH (Case No. 7 O 95/15) based on the statute of limitations. The case concerned claims for personal injury and death brought by four Pakistani nationals against German retailer KiK Textilien and Non-Food GmbH (“KiK”) in
Supply chain liability under the law of negligence: What does Jabir and Others v KiK Textilien und Non-Food GmbH mean for European companies with supply chains in the sub-continent and other common law countries?
Last month a court in Dortmund heard arguments in Jabir and others v. KiK Textilien und Non-Food GmbH. It is a case brought against a German retailer, under English law principles of tort in relation to a fire at the factory of a supplier in Pakistan. This post explains what the case is about and
The Australian Modern Slavery Bill: the next frontier in corporate accountability for adverse human rights impacts
Last week, the Australian Parliament approved the Modern Slavery Bill and it is set to come into force early in 2019. This post looks at the requirements of the Act, how it compares to the UK Modern Slavery Act and what it tells us about the changing legal landscape for business and human rights.
“Specific Instances” under OECD Guidelines – What can financial institutions learn from the recent ANZ case on providing finance to a company engaged in human rights abuses
The Australian National Contact Point for the OECD Guidelines for Multinational Enterprises (“AusNCP”), which handles “specific instances” relating to alleged non-observance of the Guidelines, has released its final statement (https://cdn.tspace.gov.au/uploads/sites/112/2018/10/11_AusNCP_Final_Statement.pdf) on a case concerning the Australia and New Zealand Banking Group’s (“ANZ”) financing of a Cambodian company engaged in human rights abuses. In 2011, ANZ
Working up from Zero: Initial Negotiations on the “Zero Draft” treaty on Business and Human Rights
The UN intergovernmental working group tasked with developing a binding international treaty on business and human rights recently concluded its fourth round of negotiations in Geneva (15-19 October 2018). In contrast to the third session, where the “Elements” of the proposed treaty were published only three weeks before the working session began, delegations were provided
Blockchain: A new frontier in supply chain management
The concept of human rights due diligence is at the heart of the UN Guiding Principles on Business and Human Rights (“UNGPs“) and is finding its way into a growing body of legislation around the world: see the French Duty of Vigilance Law, the supply chain transparency provisions of the UK Modern Slavery Act (and
UN treaty on business and human rights: Working Group publishes draft instrument
On 19 July, the UN working group tasked with elaborating an international, legally binding instrument on business and human rights published the text of a draft treaty (see the draft here and the accompanying statement by the Chair of the Working Group, here). In this blog, we look at its key terms and what it
Parent company liability – Court of Appeal upholds decision rejecting jurisdiction over claims brought against Unilever by victims of post-election violence in Kenya
On 4 July 2018, the Court of Appeal handed down judgment in AAA & Ors. v Unilever PLC and Unilever Tea Kenya Limited [2018] EWCA Civ 1532, dismissing an appeal by victims of the 2007 post-election violence in Kenya. It is the latest in a series of recent judgments on jurisdiction over parent company liability
Australia set to join the global fight against modern slavery
The world is slowly taking action against modern slavery. Since the UK introduced the Modern Slavery Act (“the UK Act“) in 2015, a number of countries have followed suit with their own legislative initiatives. The latest country poised to do so is Australia. In 2017, the joint Standing Committee on Foreign Affairs, Defence and Trade
Hogan Lovells launches Practical Guide on Respecting Human Rights in the Energy and Natural Resources Sector at industry event in Johannesburg
How does the responsibility to respect human rights apply to companies operating in the Energy and Natural Resources Sector? How does this relate to hard legal risk at a domestic and international level and, what practical steps should a business take to fulfil this responsibility and reduce its legal risk? This morning, we had the
BHR News Flash: Swiss proposal to impose human rights due diligence requirements reaches the next stage of the legislative process
In December 2017, our blog post discussed how a coalition of Swiss civil society organisations launched the Responsible Business Initiative (“RBI”), i.e. a proposal to amend the Swiss constitution to require mandatory human rights due diligence for companies based in Switzerland. While the RBI is still currently going through the Swiss legislative process, it seems
Hogan Lovells leads conversation with roundtable on the French duty of vigilance and corporate civil liability for human rights
On 17 May 2018, an unprecedented round table took place to discuss the “French duty of vigilance and civil liability in human rights matters” at our Paris office. Alongside Julianne Hughes-Jennett, London Partner and Head of our Business and Human Rights group, this event gathered Horatia Muir Watt – Professor of international private law and
Amendments to the Proceeds of Crime Act and the new Sanctions and Anti-money Laundering Bill: the UK’s answer to the Global Magnitsky Act?
Following the use of a nerve agent in Salisbury earlier this year, there were calls for the UK to adopt a British equivalent to the US Global Magnitsky Act, enabling the state to sanction gross human rights violations wherever or by whomever they are committed. This post considers the extent to which so-called “Magnitsky amendments”
Parent company liability and human rights – new claims against mining company filed in the English courts
On 16 April, proceedings were issued in the English courts against Gemfields Limited, a London-based mining company, in relation to allegations of human rights abuses in connection with the activities of its subsidiary in the vicinity of the Montepuez ruby mine in Mozambique. This case comes hot on the heels of the English Court of
Can environmental damage be prosecuted as a crime under international law?
At last week’s IBA War and Justice Conference, ICC judge Howard Morrison said that international criminal law must develop to accommodate the changing nature of atrocities and the changing nature of conflict. One example is to prosecute the perpetrators of massive environmental damage, including damage connected to business activity. This is consistent with the ICC
Foreign corporations cannot be sued under the Alien Tort Statute – Jesner v Arab Bank: the verdict
The Supreme Court of the United States (SCOTUS) has ruled in the case of Jesner v Arab Bank. On a 5:4 majority, the court ruled that foreign corporations are excluded from the scope of the Alien Tort Statute (ATS). This highly-anticipated decision means that foreign corporations can no longer be sued under the ATS, but
One year after the enactment of French law, is your company vigilant enough to avoid civil liability?
On 27 March 2017, France went one step further than other countries by adopting “hard” law on human rights with the very broad Law on the “duty of vigilance of the parent companies and main contractor companies”. This statute is now into force and the first “vigilance plans” are being published as companies file their
Update on the responsibility to respect human rights and parent company liability: what the Court of Appeal’s judgment in Okpabi and others v Royal Dutch Shell Plc and another means for UK multinationals
In the last four months, the Court of Appeal has handed down judgment in two important cases relating to parent company liability and jurisdiction over extra-territorial human rights impacts. In October, we wrote that the first of these cases (Lungowe and others v. Vedanta and KCM [2017] EWCA (Civ) 1528) created a “Catch 22” for
Canada steps up human rights oversight of companies operating abroad
Last week, Canada announced the creation of the Canadian Ombudsperson for Responsible Enterprise (CORE), an independent officer who will be tasked with investigating allegations of human rights abuses linked to Canadian corporations operating abroad. The CORE’s predecessor, the Extractive Sector Corporate Social Responsibility Counsellor, required the permission of a company to investigate a complaint and
Forum non-conveniens and access to remedy in transnational business and human rights litigation: an update from Brexit Britain and a glance across the pond
What is forum non-conveniens? According to the principle of “forum non-conveniens” (or inconvenient forum), a court has the power to dismiss a civil action where an appropriate and more convenient alternative forum exists. Variations of the principle exist in most common law jurisdictions, including England, Canada, the USA and Australia. In this post, we look
UK Modern Slavery Act – are tougher disclosure requirements on their way?
Disclosure requirements under the UK Modern Slavery Act 2015 (‘MSA’) have pushed many businesses operating in the UK to gather and interrogate information about human rights risks across their operations and supply chains – but for some advocates of the MSA and campaigners, the new disclosure regime has fallen short. The shortcomings are addressed to