Mark Goodge
2024-09-20 19:02:10 UTC
Mohamed Al Fayed is now beyond both the risk of legal action and the ability
to be defamed, so I can safely start by saying that the various allegations
levelled against him are entirely credible and I have no reason to doubt
that he was, in fact, a serial sexual abuser and rapist on an industrial
scale.
However, I'm struggling to see how any enforceable liability attaches to
Harrods Ltd, Harrods (UK) Limited, Harrods Holdings Limited, QH
Participations Limited, Harrods Group (Holding) Limited or Qatar Investment
Authority (from start to finish, the current ownership chain of the premises
in Brompton Road, Knightsbridge). The fact that Fayed undoubtedly utilised
his position as the ultimate owner of the shop in order to gain access to
the staff does not, surely, make the company responsible.
A company can, in some circumstances, be vicariously liable for the unlawful
or abusive actions of its staff if it is (or should be) aware of them but
has taken no action to discipline the staff member or prevent the abuse. But
Fayed was not a staff member. He was the owner. There was never anyone at
any level in any of the companies which form part of the Harrods empire who
had any authority over Fayed. Individually, some of his employees might be
liable for turning a blind eye in order to keep their jobs. But the idea
that there is some kind of corporate liability seems to me to be implausible
in the extreme. The company was the vehicle of its owner. You don't sue a
car for being used in a ram raid.
For avoidance of doubt, I agree that there may be some moral liability (and,
indeed, the current owners of the company have set up a compensation scheme
for Fayed's victims, which I think is the right thing for them to do). But
lawyers representing some of the victims appear to be asserting that this
isn't enough, and that there is some enforceable corporate legal liability.
Which I can't see any basis for.
Can someone explain why they're right, and I'm wrong? Or am I right?
Mark
to be defamed, so I can safely start by saying that the various allegations
levelled against him are entirely credible and I have no reason to doubt
that he was, in fact, a serial sexual abuser and rapist on an industrial
scale.
However, I'm struggling to see how any enforceable liability attaches to
Harrods Ltd, Harrods (UK) Limited, Harrods Holdings Limited, QH
Participations Limited, Harrods Group (Holding) Limited or Qatar Investment
Authority (from start to finish, the current ownership chain of the premises
in Brompton Road, Knightsbridge). The fact that Fayed undoubtedly utilised
his position as the ultimate owner of the shop in order to gain access to
the staff does not, surely, make the company responsible.
A company can, in some circumstances, be vicariously liable for the unlawful
or abusive actions of its staff if it is (or should be) aware of them but
has taken no action to discipline the staff member or prevent the abuse. But
Fayed was not a staff member. He was the owner. There was never anyone at
any level in any of the companies which form part of the Harrods empire who
had any authority over Fayed. Individually, some of his employees might be
liable for turning a blind eye in order to keep their jobs. But the idea
that there is some kind of corporate liability seems to me to be implausible
in the extreme. The company was the vehicle of its owner. You don't sue a
car for being used in a ram raid.
For avoidance of doubt, I agree that there may be some moral liability (and,
indeed, the current owners of the company have set up a compensation scheme
for Fayed's victims, which I think is the right thing for them to do). But
lawyers representing some of the victims appear to be asserting that this
isn't enough, and that there is some enforceable corporate legal liability.
Which I can't see any basis for.
Can someone explain why they're right, and I'm wrong? Or am I right?
Mark