Case - Germany - Kik Case

Kik Case

Summary of facts

On 11 September 2012, 258 workers died, and hundreds were seriously injured during a fire in the Ali Enterprise garment factory in Pakistan. The case concerns the lack of adequate health and safety measures in the factory which prevent workers from existing during the fire despite having been certified by auditors shortly prior to the fire. Four victims brought the civil claim against German retailer KIK who had been buying most of the factory’s production for several years.

Timeline

2019 Dortmund Regional Court (Court of First Instance)

Jurisdiction

Yes

Applicable Law

Pakistani Tort Law (by virtue of the Rome II Regulation)

Legal issues

Plaintiffs claimed negligence, specifically a breach of a duty to care to the workers and liability. This claim was based on KiK’s de facto ability to exert economic pressure on its supplier, Ali Enterprises, and de jure ability to claim a breach of the Code of Conduct between it and Ali Enterprises.
The case concerns the relationship between a buyer and a supplier.
The claimants argued that the proximity between the workers of the supplier and the company needed to establish a duty of care. They argued that KiK as the buyer should procure a safe and healthy working environment, which includes fire safety measures, to ensure the safety of workers in factory entities of its suppliers.
Claimants sought 30,000 euros in compensation each.

Ruling / Outcome

The case was dismissed because the statute of limitations expired.
The case did not proceed to appeal
In 2019, an out-of-court settlement (a negotiated compensation of approximately €4.69 million) was reached through the International Labor Organization.

Court case