• “Italian Torpedo” Fails to Sink Rubber Cartel Litigation in English Courts
  • August 19, 2010 | Authors: Tim Frazer; Mark Gardner; Susan Hinchliffe; Christopher M. Stothers
  • Law Firm: Arnold & Porter (UK) LLP - London Office
  • On 23 July 2010, the English Court of Appeal (CA) held that an action for damages brought against the Dow group for alleged participation in a rubber cartel could be heard in England, despite the fact that Dow had sought to join existing related proceedings in Italy. In its judgment, the CA casts serious doubt on the principle established by the English High Court in Provimi that a subsidiary company can be held liable for competition law infringements committed by its parent, notwithstanding the fact that the subsidiary company in question was not involved in the infringements. The judgment also makes it clear that the English courts will resist attempts to delay proceedings in England (e.g., by the use of procedures such as an “Italian torpedo”) and that they are unlikely to view the commencement of proceedings in other European jurisdictions as a form of “trump card” that automatically bars the bringing of proceedings in England unless it involves precisely the same parties and cause of action. www.arnoldporter.com