English Court Clarifies Test For Forseeability Risk

The ruling provides food for thought to those managing new risks.

The English Court of Appeal has taken another look at the question of foreseeability risk, again in the context of asbestos-related disease. These cases are important for companies innovating in new technologies, because they give valuable insight into the expectations for how a company should manage its activities when dealing with an area of uncertain or unmeasurable risk. In this case the court considered whether the applicable standard was set by a guidance document published by the government around the relevant time, or whether the right approach is to look at the broader circumstances, including the knowledge of the reasonable company at the time. The court concluded that the latter "more nuanced approach" was the correct route.