LUNGOWE AND OTHERS V VEDANTA RESOURCES PLC AND ANOTHER

[2016] EWHC 975 (TCC), Queen's Bench Division, Technology and Construction Court, Mr Justice Coulson, 27 May 2016

Jurisdiction - Liability of parent company for torts of subsidiary - Parent company domiciled in England - Jurisdiction of English court over parent company - Subsidiary company domiciled in Zambia - Joinder - Whether subsidiary company a necessary or proper party to claims against the parent company - Brussels Regulation Recast, article 4 - Civil Procedure Rules, rule 6.37 and Practice Direction 6B, para 3.1(3)

This was a claim brought on 31 July 2015 by 1,826 Zambian citizens, the residents of four communities in the Chingola region of Zambia, alleging personal injury, damage to property, loss of income and loss of amenity and enjoyment of land arising out of alleged pollution and environmental damage caused by the Nchanga copper mine from 2005 and continuing. Vedanta was holding company for a group of mining companies, including the second defendant, KCM, which operated and owned the mine. Permission for service outside the jurisdiction was granted by Akenhead J. In the present proceedings Vedanta applied for: (a) a declaration that the court did not have jurisdiction, or alternatively, that the court should not exercise any jurisdiction that it might have; and (b) a stay of proceedings in the courtÂ’s inherent jurisdiction. Subsequently KCM sought similar relief, as well as an order setting aside the claim form.