Resource Companies Vulnerable To Third-party Liability

Vicarious liability is of particular concern to resource companies operating in foreign jurisdictions, especially countries with high corruption risks or human rights issues.

In the May 16, 2014 issue of The Lawyers Weekly, Davis LLP's Graham Erion delves into two recent cases which underscore the importance of conducting proper due diligence when resource companies engage the services of third parties. He outlines several key steps counsel can take to help their clients avoid vicarious liability:

• ensure third-party contractors or agents have existing policies for complying with relevant laws
• ensure proper training programs and oversight mechanisms are in place for such policies