"The Jurisdiction Puzzle: Dyson, Supply Chain Liability and Forum Non Conveniens", 11 Nov 2023

On 19 October 2023, the English High Court declined to exercise jurisdiction in Limbu v Dyson Technology Ltd, a case concerning allegations of forced labour and dangerous conditions at Malaysian factories which manufactured Dyson-branded products.

The lawsuit...by...migrant workers from Nepal and Bangladesh is an example of business and human rights litigation against British multinationals for the damage caused in their overseas operations.

...[I]t advances a novel argument about negligence and unjust enrichment of the lead purchasing company in a supply chain relationship by analogy to the parent company liability for the acts of a subsidiary in a corporate group.

Since the UK’s EU referendum in 2016, the return of forum non conveniens in the jurisdictional inquiry has been seen as a real concern for victims of business-related human rights...abuses seeking justice in... English courts.

...[T]he English defendants asked the court to stay the proceedings based on forum non conveniens...

...[T]he English courts consider whether they should exercise jurisdiction in cases where the claimant would be denied substantial justice in the foreign forum. The claimants advanced several arguments to demonstrate that there is a real risk of them not obtaining substantial justice in Malaysia, including difficulties in obtaining justice for migrant workers..., the risk of a split trial... The court did not find cogent evidence that the claimants would not obtain substantial justice in Malaysia.

The underlying nature of..liability...is how the parent or lead company shaped from England human rights or environmental performance of its overseas subsidiaries and suppliers.

Undoubtedly, the ruling will be appealed...