Creasey v Breachwood Motors Ltd

Creasey v Breachwood Motors Ltd
Citation(s)	[1993] BCLC 480

Creasey v Breachwood Motors Ltd [1993] BCLC 480 is a UK company law case concerning piercing the corporate veil.

Facts

Mr Creasey was dismissed from his post of general manager at Breachwood Welwyn Ltd. He claimed that this constituted wrongful dismissal, in breach of his employment contract. However, before he could claim, Breachwood Welwyn Ltd ceased trading, and all assets were moved to Breachwood Motors Ltd, which continued the business. Other creditors were paid off, but no money was left for Mr Creasey's claim, which was not defended and held successful in an order for £53,835 against Breachwood Welwyn Ltd. Mr Creasey applied for enforcement of the judgment against Breachwood Motors Ltd and was successful. Breachwood Motors Ltd appealed.

Judgment

Mr Richard Southwell lifted the corporate veil to enforce Mr Creasey's wrongful dismissal claim. He held that the directors of Breachwood Motors Ltd, who had also been directors of Breachwood Welwyn Ltd, had themselves deliberately ignored the separate legal personality of the companies by transferring assets between the companies without regard to their duties as directors and shareholders.

Significance

The case was heavily doubted by the Court of Appeal in Ord v Belhaven Pubs Ltd.^[1]

Corporate personality cases

Case of Sutton's Hospital (1612) 77 ER 960

Salomon v A Salomon & Co Ltd [1896] UKHL 1

Prest v Petrodel Resources Ltd [2013] UKSC 34

Macaura v Northern Assurance Co Ltd [1925] AC 619

Gilford Motor Co Ltd v Horne [1933] Ch 935

Lee v Lee’s Air Farming [1960] UKPC 33

Jones v Lipman [1962] 1 WLR 832

Tunstall v Steigmann [1962] 2 QB 593

Littlewoods Mail Order Stores v IRC [1969] 1 WLR 1214

Wallersteiner v Moir [1974] 1 WLR 991

DHN Ltd v Tower Hamlets LBC [1976] 1 WLR 852

Woolfson v Strathclyde Regional Council [1978] UKHL 5

Adams v Cape Industries plc [1990] Ch 433

Ord v Belhaven Pubs Ltd [1998] EWCA Civ 243

Lubbe v Cape Plc [2000] UKHL 41

Gencor ACP Ltd v Dalby [2000] EWHC 1560 (Ch)

Trustor AB v Smallbone (No 2) [2001] EWHC 703 (Ch)

Chandler v Cape plc [2012] EWCA Civ 525

VTB Capital plc v Nutritek Int Corp [2013] UKSC 5

Rome II Regulation (EC) No 864/2007 arts 1(2)(d) and 4

see UK company law

Notes

↑ [1998] 2 BCLC 447

References

External links

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