Legal Question in Personal Injury in California

Can the tort of negligent exercise of retained control be extended to the liability of a Californian firm buying clothing from a deplorable factory with poor working standards and underage workers in Guatemala if it has knowledge of the conditions and has great influence over the factory? Would it be breaching any US Federal laws or treaty/convention obligations?

Assuming the factory workers are being represented by an NGO and are demanding personal injury compensation and the factory owners have no assets.

How would you claim compensation on behalf of the victims in an arbitration tribunal using California law?


Asked on 9/10/14, 10:25 am

1 Answer from Attorneys

There is no tort of "negligent exercise of retained control." You have to prove violations of the law of Guatemala, and that the person or entity you want to have held liable was in actual control of the conditions and/or conduct that violated the law. It seems you are trying to have the California firm held liable for nothing more than being a major customer of a factory that engaged in illegal activities. That isn't even close to enough. You keep using the words like "influence" and "knowledge." I don't know Guatemala law, but in the U.S. that is so far removed from what it takes to establish liability that the NGO would risk being sued for malicious prosecution and abuse of process after the CA company got the case thrown out. Knowledge and influence is not legal control, and there are no US laws that would help you. Furthermore, in the U.S. you can't use an arbitration tribunal without the consent of all parties, either in a contract that calls for arbitration of disputes, or by an agreement to arbitrate a dispute once it arises.

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Answered on 9/10/14, 11:06 am


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