If you have been injured because of the actions of a hospital, care home, school or other organisation, you may later discover that the organisation has been sold or is now run by a different company.
This can make it difficult to know who you should bring your claim against. You might naturally assume that the new owner has taken over responsibility for everything that happened before it bought the organisation. However, a recent Court of Appeal decision shows that this is not necessarily the case.
What happened in ABC v Huntercombe?
The case concerned a woman who alleged that she had suffered harm while she was a patient at a privately run psychiatric hospital.
The events she complained about happened before the hospital’s business was transferred to a new company. Some of the employees involved subsequently became employees of that new company.
The question for the Court was whether the new company had also taken on legal responsibility for the alleged actions of those employees before the transfer.
The Court of Appeal decided that it had not. In particular, the relevant rules did not transfer the former employer’s liability to a third party for alleged wrongdoing by employees before the business was transferred.
Why does this matter?
The decision is important for people considering a claim involving an organisation that has since changed hands.
A change of ownership does not necessarily mean that the new owner becomes legally responsible for something that happened before it took over.
This can be particularly important if the original company:
- has stopped trading;
- has gone into liquidation;
- does not have enough assets to pay compensation; or
- may not have adequate insurance to cover the claim.
In ABC v Huntercombe, difficulties concerning the original company’s financial position and its insurance arrangements were part of the background to the attempt to establish liability against the new operator.
Can I still make a claim?
Potentially, yes.
If the organisation responsible at the time of your injury no longer exists or has changed ownership, that does not necessarily mean that your claim is at an end.
It may be necessary to investigate:
- which company or organisation was legally responsible when the events happened;
- whether that organisation still exists;
- whether there was relevant insurance in place;
- whether anyone else may be legally responsible; and
- whether there is a realistic way of recovering compensation if a claim succeeds.
The answer will depend on the circumstances of the individual case.
Why getting advice early matters
Working out who is legally responsible can sometimes be as important as establishing what went wrong.
This is particularly true where a hospital, care provider, school or business has been sold, restructured or placed into insolvency since the events concerned.
Early investigation can help identify the correct person or organisation against whom a claim should be made and whether there is insurance or another potential route to recovering compensation.
How we can help
If you have suffered an injury and discover that the organisation involved has since changed ownership or stopped trading, do not assume that you cannot make a claim.
Equally, you should not assume that the organisation now running the business will automatically be responsible for what happened before it took over.
Our specialist team can investigate the circumstances, identify who may be legally responsible and advise you about the options available for pursuing compensation.
Contact us
If you would like advice about a potential claim, please contact our Personal Injury Department at personalinjuryreferrals@nalders.co.uk or our Clinical Negligence Department at clinicalnegligencereferrals@nalders.co.uk for an initial discussion. Alternatively, please call us on 01726 879333. Nalders LLP has offices in Falmouth, Truro, Camborne, Newquay, St Austell and Penzance, Cornwall.
This article is for general information only and does not constitute legal or professional advice. Please note that the law may have changed since this article was published.