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Focus on Regulation

Tag Archives: Parent liability

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

The return of the kin liability (Sippenhaft) – Liability of parent companies after the 9th amendment of the German Act against Restraints of Competition (GWB)

The Middle Ages are regarded as the golden age of the kin liability (Sippenhaft) in Germany. According to the principle of kin liability, family members had to stand up for the actions of their relatives, regardless of whether they were involved or not. Thus, kin liability was a form of collective liability. A family member was liable even if it had done nothing wrong. This principle was so far unknown to the German law of regulatory offences and law of torts. In these areas of law it was undoubtedly the principle of separation of legal entities (Trennungsprinzip) that ruled. Pursuant to such principle, a legal entity is only liable for such antitrust violations that have been committed by its organs or employees in an attributable manner. Not for more. The 9th GWB-amendment now applies the ax to this basic principle. Is there a relapse into dark medieval times? This blog post is devoted to the question what the new German law has to say on the issue of corporate collective liability in the field of competition law.