Research On The Environment Tort Liability Mechanism Over Multinational Corporations

As the significant part of the international economic, multinationalcorporations play a decisive role in the field of international investment.Lots of multinational corporations are taking advantage of theenvironmental standard difference between the developing countries andthe developed countries and then carry out double standard, making theenvironment and the resident in the investment host countries suffered asa result of a tort. When investigating the liability for the sub companies,the victims usually can’t get adequate relief because the sub companies’capital can’t bear the huge environment tort compensation obligation.Meanwhile, the parent corporations refuse to take responsibility for thesub companies for the reason of the independent legal entity of the company. The courts of the developed countries often reject the damageclaim from the victims of the investment host countries by using thedoctrine of “From Non Conveniens”. China is the most representativeleading country among developing countries. The rapid development ofChina’s economy attracts lots of multinational corporations. The arrival ofthe multinational corporations is the “two sides of the coin”, it addspower for China’s reform and opening up policy, also buries much of thelegal risks. The dissertation is aimed at making a preliminary research onthe environment tort liability mechanism over multinational corporationsand giving beneficial help to the reality.Part Ⅰ tells about the relevant definition of the “multinationalcorporations”、“environment tort liability”, and clarifies thetransnational、 common policy、 inside-contact of multinationalcorporations, the important condition of the constitution of the mayhappen environment tort liability and the relevant characteristics.Multinational corporations making the environment tort is being analyzedby the relevant cases. The basis of the theories is mainly socialresponsibility、sustainable development、ecological contract theory、common but differentiated responsibilities.Part Ⅱ tells about the entity problem of the environment tort liabilityof the multinational corporations. The subjects of the responsibility arethe sub companies and the parent corporations. The environment tort liability mechanism needs to break through the bind of the traditionaldoctrine of the “limited responsibility”, and adopts the mechanism of“disregard of corporate personality”. The plaintiff of the mechanism of“disregard of corporate personality” prefers to the “EnvironmentalProtection Bureau”, and the defendant of it prefers to the positiveshareholders and the practical controller.“Capital obvious insufficient”、“over control”、“mixture of corporate personality” are the threeimportant condition of “disregard of corporate personality”. This part alsoelaborates three typical cases. The author suggests establishing the socialenvironment tort liability, and dispersing the liability to the majoritythrough financial warranties、insurance of environment tort liability inorder to compensate the victim sufficiently、timely、effectively, and alsoassure the infringers normal production and the society stable.Part Ⅲ tells about the procedure problem of the environment tortliability of the multinational corporations. The jurisdiction of theenvironment tort is mainly on territorial jurisdiction and the jurisdictionexists conflict. Forum non conveniens is an important principleestablished by the case law of the American court. This principle isestablished out of the judicial justice and prevents the plaintiff throughthe “forum shopping” way to cause bothered to the defendant. Thedissertation analyzes the Forum non conveniens through the Gulf Oil case.Sinochem International Co. Ltd., v. Malaysia International Shipping Corp. is the relatively new case of judicial practice, in which Forum nonconveniens gets the most incisive application.Part Ⅳ analyzes the corporation personality according to Chinesecourt judicial practice.“Disregard of corporate personality” should becarefully used and strictly interpreted. The environment tort liability ofthe multinational corporations in our country is still mainly on territorialjurisdiction. The dissertation analyzes the advantages and disadvantagesof the forum non conveniens and considers it as rapier. Our courts canadopt the quintessence of the principle, and at the same time it also needsto fully consider for our company which has overseas litigation as it isground of opposition.