Facts
Cape Industries plc was a UK company, head of a group. Its subsidiaries mined asbestos in South Africa. They shipped it to Texas, where a marketing subsidiary, NAAC, supplied the asbestos to another company in Texas. The employees of that Texas company, NAAC, became ill, with asbestosis. They sued Cape and its subsidiaries in a Texas Court. Cape was joined, who argued there was no jurisdiction to hear the case. Judgment was still entered against Cape for breach of a duty of care in negligence to the employees. The tort victims tried to enforce the judgment in the UK courts. The requirement, under conflict of laws rules, was either that Cape had consented to be subject to Texas jurisdiction (which was clearly not the case) or that it was present in the US. So the question was whether, through the Texas subsidiary, NAAC, Cape Industries plc was ‘present’. For that purpose the claimants had to show in the UK courts that the veil of incorporation could be lifted and the two companies be treated as one.
Scott J held that the parent, Cape Industries plc, could not be held to be present in the United States. The employees appealed.
Read more about this topic: Adams V Cape Industries Plc
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