This guide is maintained as a current resource for September 2026 and covers only the laws of England and Wales. Information is for general guidance, not legal advice. Consult a qualified solicitor for advice specific to your situation.
Comprehensive guide on shared liability between businesses and local authorities in public liability claims in England and Wales. Explains how duties arise, apportionment of fault, occupiers' liability, evidence requirements, time limits and practical steps for pursuing claims against multiple defendants.
Accidents or injuries in public spaces - such as on pavements, in parks, near shop fronts or in shared facilities - may involve more than one responsible party. In some public liability claims in England and Wales, both a business and a local authority (such as a county council or borough council) can share legal liability for the same incident. Understanding how responsibility may be divided between multiple parties helps claimants identify defendants, demonstrate fault levels, and pursue appropriate compensation. This article explains when shared liability may arise, the relevant legal principles, how courts apportion responsibility, time limits, practical steps for claimants, and common questions around mixed claims involving businesses and local authorities.
Legal Duties Owed by Businesses and Local Authorities
Both businesses and local authorities can owe legal duties to the public under occupiers' liability and general negligence principles:
Occupiers' Liability (Premises): Under the Occupiers' Liability Act 1957, anyone who has sufficient control over premises owes a duty to take reasonable care to ensure lawful visitors are reasonably safe. “Occupier” in this context refers to whoever has control over the premises, not just the owner. This can include businesses operating on land and local authorities that manage public spaces.
For example, a business may be the occupier of its shop interior or private car park, while a local authority may be the occupier or controller of adjacent pavements, public walkways or access routes. Both can therefore owe duties under occupiers' liability if they have sufficient control over different parts of a site where an accident happened.
General Negligence: Outside occupiers' liability, both entities can owe duties under general negligence law if their conduct creates foreseeable risks of harm. Local authorities have statutory obligations to maintain public highways, pavements and parks in a safe condition, and failure to do so may lead to negligence claims. Businesses must also keep their premises and immediate surroundings safe for customers and visitors.
When Liability May Be Shared
Shared Control of the Premises:
If a location has multiple occupiers or overlapping control, more than one party can owe a duty and be liable for injuries. For example, if a business frontages onto a public pavement maintained by a local authority, and a pedestrian slips due to a hazard partly on private land and partly on the public path, both the business and the authority may have contributed to the unsafe condition. Courts recognise that more than one legal duty can exist over the same space.
Joint Activities or Overlapping Responsibilities:
Shared liability can arise where a business and a local authority both have responsibilities for safety measures or risk assessments. For example, if a council operates a market and a business uses adjacent stalls, failure to manage hazards in common areas could involve duties on both sides.
Shared Events and Public Access:
In events or spaces that involve cooperation between businesses and councils - such as street fairs, public exhibitions or regeneration sites - each may have duties to manage risk. In these cases, their respective obligations and control of the area are key to establishing liability.
How Liability Is Apportioned
When both a business and a local authority may be liable, English law allows courts to apportion responsibility between defendants according to their respective roles in causing or failing to prevent the accident. Liability apportionment may take place under the Civil Liability (Contribution) Act 1978. This Act enables a court to decide how much each defendant should contribute to a compensation award based on causative responsibility and degree of fault.
In a reported case, liability for a serious accident was apportioned between a local authority and a private company, with percentage shares attached to each defendant's contribution to the hazard. Factors considered included knowledge of risk and control over the hazard.
Practical Scenarios of Shared Liability
Example 1: Trip on Mixed Premises
A pedestrian trips on uneven paving where a shop exit meets a public pavement. If the business is responsible for its doorway maintenance, and the authority is responsible for the public pavement, both could share liability if evidence shows both contributed to the hazard.
Example 2: Slips on Icy Surfaces
During icy weather, a business may have a duty to clear its own entrance, and a council may owe a duty to grit pavements and public thoroughfares. If an injury occurs where these areas meet and both parties failed to take reasonable steps, shared liability may result.
Example 3: Public Events
At a council‑organised event with commercial stalls, businesses are responsible for safe stall areas while the council must ensure public routes, crowd control and general site safety. Hazards arising from both responsibilities can lead to claims naming multiple defendants.
Insurance Considerations
Both businesses and local authorities typically carry public liability insurance to cover compensation and legal costs arising from claims. Even if liability is shared, insurers often handle contribution discussions and settlement negotiations. It is important for claimants to identify all potential defendants early in the claim so that insurers can be notified and evidence preserved.
Unlike employers' liability insurance (which is compulsory for employers), public liability insurance is not legally mandatory but is widely held by both councils and businesses that interact with the public.
Time Limits for Claims
Public liability claims must be issued within three years of the accident or from when the claimant knew the injury was significant, under the Limitation Act 1980. This limitation applies regardless of whether one or multiple defendants are involved. Missing the deadline generally prevents a claim from progressing. Early legal action helps preserve evidence, especially where multiple parties and insurers are involved.
Challenges in Shared Liability Claims
Establishing Duty and Breach:
Claimants must show that both a business and a local authority owed a duty of care and breached it. This requires evidence of control, maintenance records, inspection logs, risk assessments and policies governing safety measures.
Apportionment Disputes:
Defendants may dispute the extent of their responsibility, arguing that either the other party had greater control or that no breach occurred. Courts examine the causal role of each party's conduct in bringing about the accident.
Multiple Insurers:
With each defendant typically insured separately, coordinating disclosure, settlement discussions and liability admission can be complex. Solicitors experienced in public liability claims can assist in managing these processes.
Practical Steps for Claimants
1. Identify All Potential Defendants:
Examine who controlled various parts of the site where the accident occurred. Photos, land records, leases, contracts and signage can help clarify control and responsibility.
2. Preserve Evidence:
Collect photographs, witness statements, maintenance records and incident reports quickly. Evidence is crucial where duties of both business and local authority must be demonstrated.
3. Consider Early Legal Advice:
A specialist solicitor can help evaluate whether shared liability applies, issue pre‑action letters of claim under applicable protocols and calculate potential apportionment scenarios.
4. Notify Insurers Promptly:
Early notification to insurers of both potential defendants helps prevent disputes over coverage and preserves policy rights.
Common Questions
Can both a business and a council be sued in one claim?
Yes. Where both have relevant control or duties that contributed to an accident, a claimant can issue a claim naming both as defendants.
Will compensation be reduced if liability is shared?
Compensation amounts depend on apportionment. If liability is shared, each defendant may contribute according to the degree of fault assigned by the court.
What if one defendant has no insurance?
If one defendant cannot meet an award, a claimant may seek the full amount from others, with the indemnified party pursuing contribution under the Civil Liability (Contribution) Act.
Key Takeaways
Liability for public liability accidents in England and Wales can be shared between a business and a local authority when both owe duties of care that contributed to harm. Shared liability arises from occupiers' liability and general negligence principles when control of premises or risk management responsibilities overlap. Courts may apportion responsibility under statutory contribution rules, with each defendant contributing according to their involvement in the hazard. Identifying defendants early, collecting strong evidence and pursuing coordinated claims help ensure that claimants achieve appropriate compensation against all responsible parties.
