What happens when a corporate subsidiary or network company is unable to pay personal injury victims in full? This book sets out to tackle the 'insolvent entity problem', especially as it arises in cases of mass wrongdoing such as those involving asbestos exposure and defective pharmaceuticals. After discussing the nature of corporate groups and networks from the perspectives of business history, organisation studies, and social theory, the book assesses a range of rules and proposed rules for extending liability for personal injuries beyond insolvent entities. New proposals are put forward for an exception to the rule of limited liability and for the development of a flexible new tort based on conspiracy that encompasses not only control-based relationships but also horizontal coordination between companies. The book concludes with a general discussion of lessons learned from debates about extended liability and provides guidelines for the development of new liability rules.
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'The book is lucidly written and presents many a thought-provoking argument. It is built on a very extensive exploration of tort and company law, as well as other academic disciplines such as economics, sociology and philosophy. Witting draws on law and scholarships not just from this jurisdiction, but also from many others: in addition to Commonwealth countries, the author has clearly undertaken considerable investigations into how the insolvent entity problem has been approached in the United States. It is a stellar example of interdisciplinary and comparative research.' William Day, Journal of Professional Negligence
This book discusses the insolvent entity problem, arising when companies within corporate groups and networks are unable to pay personal injury victims in full. It provides arguments for rules extending liability for personal injuries beyond insolvent entities especially in cases of mass wrongdoing such as asbestos exposure and defective pharmaceuticals.
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