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Journal of European Tort Law

Editor-in-Chief: Oliphant, Ken

Ed. by Karner, Ernst / Koch, Bernhard A. / Wendehorst, Christiane

3 Issues per year

Online
ISSN
1868-9620
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Risky Business: Enterprise Liability, Corporate Groups and Torts

Glen Wright
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  • Research Fellow, Institute for Sustainable Development and International Relations (IDDRI), Sciences Po, Paris, FranceFrance
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Published Online: 2017-05-04 | DOI: https://doi.org/10.1515/jetl-2017-0003

Abstract

Corporate personality and limited liability have been the foundations of corporate law for most of its modern history. While these concepts greatly contributed to the early development of corporations, their application in the modern era is outmoded. Nowhere is this clearer than in ‘risky business’ scenarios, where a subsidiary is constituted for the purpose of shielding the corporate group as a whole from tortious liability arising from risky or dangerous activities. Tort victims generally must rely on ineffective and inconsistent common law and tort law doctrines in order to seek redress for torts committed against them, and a number of high profile cases have highlighted the flaws in such approaches. Many corporate law and tort scholars have commented on these flaws and a literature has developed proposing rational alternatives. This paper presents the case for adopting ‘enterprise liability’ in risky business situations, that is, treating the companies within a corporate group as one unified enterprise for the purposes of compensating tort victims.

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Published Online: 2017-05-04

Published in Print: 2017-05-01


Citation Information: Journal of European Tort Law, ISSN (Online) 1868-9620, ISSN (Print) 1868-9612, DOI: https://doi.org/10.1515/jetl-2017-0003.

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