Erskine Chambers is delighted to share the judgment in Emeryville v Swagelock Co & Hanson Building Materials Ltd (HBM).

26th November 2024

Erskine Chambers is delighted to share the judgment in Emeryville v Swagelock Co & Hanson Building Materials Ltd (HBM).

In Emeryville v Swagelock Co & Hanson Building Materials Ltd (HBM), HBM successfully defended, at trial, an environmental liabilities case brought by the city of Emeryville, California (the Proceedings). HBM, formerly known as Hanson Plc, was previously the listed parent of a number of industrial companies in the US and the UK.

Emeryville had sought to pierce the corporate veil of Smith Corona Marchant (SCM), a subsidiary of HBM, for the purpose of rendering HBM liable for the cost of cleaning up contamination allegedly caused by SCM. Veil piercing cases rarely go to trial in the US. The clean-up costs were estimated to be in the region of $83 m, with a total claim exceeding $100 m.

At trial, the court ruled that it lacked personal jurisdiction over HBM. It went on to hold that, even if it had jurisdiction, it would refuse to pierce the corporate veil between HBM and its former subsidiary, or to impose alternate forms of successor liability.
HBM was represented by K&L Gates (San Francisco) lead by, amongst others, Ed Sangster. Michael Todd KC of Erskine Chambers served as an expert witness for HBM regarding parent corporation liability and piercing the corporate veil under English law.

Please click here to view the Judgment.