Parent Company’s Civil Liability to Victims Affected by a Subsidiary’s Hazardous Substance Contaminated Site

Abstract

The main purpose of this study is to examine the civil liability of parent company to victims affected by a subsidiary’s hazardous substance contaminated site. In this regard, this research adopts a qualitative methodology through an analysis of comprehensive legal materials, including legal provisions, court judgments, legal textbooks, and academic papers.

The study found that the Enhancement and Conservation of National Environmental Quality Act, B.E. 2535 does not currently provide adequate provisions for imposing civil liability on the parent company in cases where environmental damage arises from a subsidiary’s contaminated site. In cases where the parent company oversees or is involved in managing operations related to the pollution source but does not physically possess or hold the site for its own benefit, it may not be regarded as a “possessor” under Section 96. As a result, liability may not be imposed under the current legal framework. In addition, where the parent company’s conduct does not constitute a tort but involves the misuse of the subsidiary’s separate legal personality—such as using the corporate structure to avoid responsibilities or commingling assets— In the absence of a tortious act, the parent company cannot be held accountable under existing law. Therefore, it is necessary to introduce specific provisions on parent company liability under the Act in order to ensure that victims of environmental harm receive fair and adequate redress.