Liability of Multinational Enterprises for Their Subsidiaries' Torts

Abstract

The purpose of the thesis is to examine problems related to the liability of multinational enterprises (MNEs) for their subsidiaries' torts. The reason for the existence of the problems is that the legal theories and practice fail to understand interdisciplinary features of MNEs. Thus, there have been no satisfactory solutions to the problem of tort liability of MNEs. In order to understand the questions of liability, there should be an examination of the concept of multinational enterprise using interdisciplinary methodology. Thus, the thesis, in the first section, examines the social, economic, managerial and legal characteristics of MNEs and compares the findings of this examination to the current understanding of MNEs in the way that tort liability is applied to them. As a result, there is a conflict between legal understanding of the structure of MNEs and contemporary realities; while legal practice considers MNEs as simple vertically structured organisations; an interdisciplinary examination reveals more complex horizontal structures with different characteristics. This conflict creates problems of liability and also prevents satisfactory solutions to problems of tort liability in the context of MNEs. In the second section, the thesis examines the existing laws related to liability of MNEs from different jurisdictions. The aim of this examination is to assess whether these laws are adequate for the challenges modern MNEs create. The thesis seeks in each sub-section to understand how groups of companies are conceived by these laws and how liability rules would be different if modern understandings of MNEs are applied in these cases. In the final section, the thesis aims to identify the basic problems of achieving satisfactory tort liability for MNEs and it offers solutions to the problems of liability for MNEs subsidiaries' tort based on the findings in the first and the second parts of the thesis.