Jones v Lipman
Jones v Lipman |
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Court |
High Court |
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Citation(s) |
[1962] 1 WLR 832 |
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Keywords |
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Lifting the veil |
Jones v Lipman [1962] 1 WLR 832 is a UK company law case concerning piercing the corporate veil. It exemplifies the principal case in which the veil will be lifted, that is, when a company is used as a "mere facade" concealing the "true facts", which essentially means it is formed to avoid a pre-existing obligation.
Facts
Mr Lipman contracted to sell a house at 3 Fairlawn Avenue, Chiswick, Middlesex (now Ealing W4) to Mr Jones for £5,250. He changed his mind and refused to complete. To try and avoid a specific performance order, he conveyed it to a company formed for that purpose alone, which he alone owned and controlled.
Judgment
Russell J ordered specific performance against Mr Lipman and the company.
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The defendant company is the creature of the first defendant, a device and a sham, a mask which he holds before his face in an attempt to avoid recognition by the eye of equity. |
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See also
Corporate personality cases |
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| | | | | | | | | | | Lee v Lee’s Air Farming [1960] UKPC 33 | | | | | | Littlewoods Mail Order Stores v IRC [1969] 1 WLR 1214 | | | | DHN Ltd v Tower Hamlets LBC [1976] 1 WLR 852 | | | | | | | | | | | | | | | | VTB Capital plc v Nutritek Int Corp [2013] UKSC 5 | | | | see UK company law |
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Notes
References
External links