Held: The House declined to allow the principal shareholder of a company to recover compensation for the . Woolfson v Strathclyde Regional Council: part our commitment to scholarly and academic excellence, all articles receive editorial review.|||... World Heritage Encyclopedia, the aggregation of the largest online encyclopedias available, and the most definitive collection ever assembled. Woolfson v Strathclyde Regional Council, [1978] SC (HL) 90. However this approach was subsequently criticised in Woolfson v Strathclyde Regional Council [1978] SC (HL) 90, making the point that the Court of Appeal in DHN had made no mention of the principle that the veil would only be pierced “where special circumstances exist indicating that [the company] is a mere façade concealing the true facts” (at 96). As a conclusion, the notion of separate legal personality remains to this day an important feature of However, in Woolfson v Strathclyde Regional Council the House of Lords rejected Lord Denning’s view, doubting whether the Court of Appeal had applied the correct principle in DHN. Unusually, the request to do so was in this case made by the corporation's owner. The Lords therefore emphasised … Woolfson v Strathclyde Regional Council 1978 - the old test. Frequently asked questions that can be filtered to suit you. Woolfson v Strathclyde Regional Council [1978] UKHL 5 is a UK company law case concerning piercing the corporate veil. Common law countries usually uphold this principle of separate personhood, but in exceptional situations may "pierce" or "lift" the corporate veil. However, the House of Lords ruled that Woolfson and its subsidiary were not a single economic unit due to operational practices. In the 1897 UK case Salomon v. Salomon Ltd, the House of Lords held that an incorporated company is a distinct entity: ... Woolfson v Strathclyde Regional Council 1978] SC 90, the House of Lords has since then rejected some of the conclusions reached by Lord Denning. However, in Woolfson v Strathclyde Regional Council the House of Lords rejected Lord Denning’s view, doubting whether the Court of Appeal had applied the correct principle in DHN. The United Kingdom company law regulates corporations formed under the Companies Act 2006. To set a reading intention, click through to any list item, and look for the panel on the left hand side: Archivent Sales and Development v Strathclyde Regional Council (1984) Archivent sold some ventilators to R Co who were main contractors for the construction of a primary school which they were building for the Strathclyde Regional Council. Could only be pierced where there were special circumstances which indicated the veil is a mere facade concealing the true facts. WTLR Issue: September 2013 #132. It stands as a liberal example of when UK courts may lift the veil of incorporation of a company. Note that since this case was based in Scotland, different law applied. Liabilities should therefore, be attached to the whole group as companies aim to reach a single economic goal. The position there was that compensation for disturbance was claimed by a group of three limited companies associated in a wholesale grocery business. I have looked at a number of cases-they are all revenue cases … The business in the shop was run by a company called Campbell Ltd. A similar comment was made by Slade LJ in Adams v Cape Industrial Plc [1990] CH 433, … FAQs READ MORE. Woolfson v. Strathclyde Regional Council (1978) ALT 159. P alleged that they conducted a campaign of … It carried on no activities whatever. Note that since this case was based in Scotland, different law applied. A mere facade. The business in the shop was run by a company called Campbell Ltd. Keywords: sex discrimination, harassment, less favourable treatment. Der Merismus. The US subsidiary had no assets. 6 ibid [63], [103]. This argument was advanced successfully in the 1976 case of DHN Foo… Porcelli v Strathclyde Regional Council [1986] ICR 564 is a UK labour law case concerning sex discrimination. As a conclusion, the notion of separate legal personality remains to this day an important feature of … A bridal clothing shop at 53-61 St George’s Road was compulsorily purchased by the Glasgow Corporation. Once registration has been successfully completed a new legal person is created: its legal liabilities are totally separate from those of its members. I have some doubts whether in this respect the Court of Appeal properly applied the principle that it is appropriate to pierce the corporate veil only where special circumstances exist indicating that is a mere façade concealing the true facts. We haven't found any reviews in the usual places. Piercing the corporate veil or lifting the corporate veil is a legal decision to treat the rights or duties of a corporation as the rights or liabilities of its shareholders. Adams v Cape Industries plc [1990] Ch 433 is a UK company law case on separate legal personality and limited liability of shareholders. Woolfson v Strathclyde Regional Council, [1978] SC (HL) 90. However, the House of Lords ruled that Woolfson and its subsidiary were not a single economic unit due to operational practices. A suffered injuries through exposure to asbestos dust and wanted to sue. Tables of Cases The following abbreviations of Reports are used: AC Law Reports, Appeal Cases All ER All England Law Reports BLR Building Law Reports CH Law Reports, Chancery CILL Construction Industry Law Letter CLD Construction Law Digest Con LR Construction Law Reports Const LJ Construction Law Journal CSIH Court of Session Inner House CSOH Court of Session … WOOLFSON v. STRATHCLYDE REGIONAL COUNCIL ... A special case was at their request stated for the opinion of the Court of Session, and on 3 December 1976 the Second Division (Lord Justice-Clerk Wheatley. What people are saying - Write a review We haven't found any reviews in the usual places. Just want to know how widely known it is outside Scotland. HELP. Some male co-workers at Strathclyde Regional Council made sexually abusive comments to a Ms Porcelli. in support of this ground of judgment and, as to the first of them, to some extent also by Lord Denning, M.R., do not, with respect, appear to me to be concerned with that principle. On the King's behalf, the Lord Chancellor developed a parallel justice system in the Court of Chancery, commonly referred as equity. The leading case is Cape Industries. Porcelli v Strathclyde Regional Council [1986] ICR 564, Court of Session; Case Summary. Woolfson v Strathclyde Regional Council (1978): This was similar to DHN v Tower Hamlets. References: [1978] UKHL 5, [1979] JPL 169, (1978) 248 EG 777, 1978 SC (HL) 90, 1978 SLT 159, (1979) 38 P and CR 521 Links: Bailii Coram: Wilberforce, Fraser of Tulleybelton, Killowen, Kinkel LL Ratio: The House considered the compensation payable on the compulsory purchase of land occupied by the … The opposing decision to DHN Food Distributors was the ruling of the House of Lords in the case of Woolfson v Strathclyde Regional Council. Therefore the more fact that the case is one which falls within Salomon v Salomon & Co. is not of itself conclusive.’ It seems therefore to be a question of fact in each case, and those cases indicate that the question is whether the subsidiary was carrying on the business as the company’s business or as its own. ] 2 AC 337 at [ 124 ] decisions of this House in Caddies v Harold Holdsworth & (... Title to the whole group as companies aim to reach a single economic unit due to operational.... 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