Parent Company’s Liability in Tort for Injury to Worker of Subsidiary Goes to Louisiana Jury
The estate of a senior welder killed in the construction of a large winch in Houma, Louisiana brought suit for negligence against the parent company of the worker’s employer for
“failing to adequately manage, supervise, and direct their subsidiary in the performance of its operations and/or implement corporate safety policies.” The U.S. District Court for the Eastern
District of Louisiana denied summary judgment and will allow the case to proceed to the jury to determine whether the parent undertook to assume a legal duty for the worker’s safety under Section 324A of the Restatement (Second) of Torts. The court cited the following evidence that created a genuine issue of material fact on the question: the parent provided a detailed safety management system to the subsidiary, conducted periodic audits of the subsidiary and collected HSE documentation, and intended to be closely involved with the safety policies of its subsidiaries.
