Viasystems (Tyneside) Ltd v Thermal Transfer (Northern) Ltd [2006] 2 WLR 428 (CA)

Facts

  • Viasystems (Tyneside) Ltd owned a factory where flooding damage occurred during construction work.
  • Thermal Transfer (Northern) Ltd, the main contractor, subcontracted installation tasks to CAT Metalwork Services.
  • CAT employed a fitters’ mate, Mr. Strang, who was supervised by both CAT and Thermal Transfer personnel during installation of air conditioning units.
  • Mr. Strang negligently caused flooding, leading to significant damage.
  • Viasystems sued Thermal Transfer for compensation.
  • Thermal Transfer argued that liability should rest with CAT, asserting CAT’s control over Mr. Strang.
  • The court had to determine whether both employers could be held vicariously liable for Mr. Strang’s actions.

Issues

  1. Whether an employee can be under the control of two employers for the purposes of vicarious liability.
  2. Whether vicarious liability can be shared between two employers where both exercise control and involvement over the employee.
  3. How liability should be apportioned in modern employment settings such as subcontracting and joint ventures.

Decision

  • The Court of Appeal found that both CAT and Thermal Transfer exercised significant control and involvement over Mr. Strang.
  • It determined that dual vicarious liability can apply where two employers share relevant control and coordination of the employee’s work.
  • Liability was not seen as all-or-nothing; it could be apportioned between both employers according to their respective involvement.
  • The judgment recognized that such sharing of liability is fair and reflective of contemporary employment arrangements.

Legal Principles

  • Vicarious liability may attach to multiple employers where control and involvement are shared over an employee.
  • The key determinants of liability are the degree of control exercised and the extent to which the employee is integrated into each employer’s business.
  • The doctrine is flexible to accommodate modern practices, including temporary staffing, subcontracting, and joint ventures.
  • Liability may be apportioned between employers rather than attributed solely to one.

Conclusion

The Court of Appeal’s judgment in Viasystems v Thermal Transfer [2006] clarifies and extends the doctrine of vicarious liability, allowing for dual liability where two employers share control and involvement over an employee, ensuring fair allocation of responsibility in complex employment relationships.

The answers, solutions, explanations, and written content provided on this page represent PastPaperHero's interpretation of academic material and potential responses to given questions. These are not guaranteed to be the only correct or definitive answers or explanations. Alternative valid responses, interpretations, or approaches may exist. If you believe any content is incorrect, outdated, or could be improved, please get in touch with us and we will review and make necessary amendments if we deem it appropriate. As per our terms and conditions, PastPaperHero shall not be held liable or responsible for any consequences arising. This includes, but is not limited to, incorrect answers in assignments, exams, or any form of testing administered by educational institutions or examination boards, as well as any misunderstandings or misapplications of concepts explained in our written content. Users are responsible for verifying that the methods, procedures, and explanations presented align with those taught in their respective educational settings and with current academic standards. While we strive to provide high-quality, accurate, and up-to-date content, PastPaperHero does not guarantee the completeness or accuracy of our written explanations, nor any specific outcomes in academic understanding or testing, whether formal or informal.
No resources available.

Job & Test Prep on a Budget

Compare PastPaperHero's subscription offering to the wider market

PastPaperHero
Monthly Plan
$10
Assessment Day
One-time Fee
$20-39
Job Test Prep
One-time Fee
$90-350

Note the above prices are approximate and based on prices listed on the respective websites as of May 2025. Prices may vary based on location, currency exchange rates, and other factors.

Get unlimited access to thousands of practice questions, flashcards, and detailed explanations. Save over 90% compared to one-time courses while maintaining the flexibility to learn at your own pace.

All-in-one Learning Platform

Everything you need to master your assessments and job tests in one place

  • Comprehensive Content

    Access thousands of fully explained questions and cases across multiple subjects

  • Visual Learning

    Understand complex concepts with intuitive diagrams and flowcharts

  • Focused Practice

    Prepare for assessments with targeted practice materials and expert guidance

  • Personalized Learning

    Track your progress and focus on areas where you need improvement

  • Affordable Access

    Get quality educational resources at a fraction of traditional costs

Tell Us What You Think

Help us improve our resources by sharing your experience

Pleased to share that I have successfully passed the SQE1 exam on 1st attempt. With SQE2 exempted, I’m now one step closer to getting enrolled as a Solicitor of England and Wales! Would like to thank my seniors, colleagues, mentors and friends for all the support during this grueling journey. This is one of the most difficult bar exams in the world to undertake, especially alongside a full time job! So happy to help out any aspirant who may be reading this message! I had prepared from the University of Law SQE Manuals and the AI powered MCQ bank from PastPaperHero.

Saptarshi Chatterjee

Saptarshi Chatterjee

Senior Associate at Trilegal