Jones v Lipman

Jones v Lipman case law
CourtHigh Court
Full case nameConcept: Court may lift the corporate veil in some circumstances.one of the example is this JONES VS LIPMAN CASE LAW .
Citation(s)[1962] 1 WLR 832
Keywords
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 to 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 formed company.

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.

See also

  • v
  • t
  • e
Corporate personality cases
Case of Sutton's Hospital (1612) 77 ER 960
Jones v Lipman [1962] 1 WLR 832
Tunstall v Steigmann [1962] 2 QB 593
Wallersteiner v Moir [1974] 1 WLR 991
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
Rome II Regulation (EC) No 864/2007 arts 1(2)(d) and 4

Notes

References