Girish Mahajan (Editor)

Ord v Belhaven Pubs Ltd

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Citation(s)  [1998] 2 BCLC 447
Ord v Belhaven Pubs Ltd httpsuploadwikimediaorgwikipediacommonsthu
Ruling court  Court of Appeal of England and Wales
Similar  Woolfson v Strathclyde Regional, Adams v Cape Industries, DHN Food Distributors Ltd v Tow, Jones v Lipman, Lubbe v Cape plc

Ord v Belhaven Pubs Ltd [1998] 2 BCLC 447 is a UK company law case concerning piercing the corporate veil.

Contents

Facts

Mr and Mrs Ord ran the Fox Inn in Stamford, Lincolnshire. They were in an ongoing dispute with the freehold owner, Belhaven Pubs Ltd, for misrepresentation about the level profitability of the pub. However Belhaven Pubs Ltd was part of a company group structure that had been reorganised, and had no assets left. Mr and Mrs Ord requested that a company with money, Ascott Holdings Ltd, be substituted for Belhaven Pubs Ltd to enforce the judgment. At first instance the judge granted this order. Belhaven Pubs Ltd appealed.

Judgment

The Court of Appeal overturned the judge and held that the reorganisation was a legitimate one, and not done to avoid an existing obligation. Hobhouse LJ argued that the reorganisation, even though it resulted in Belhaven Pubs Ltd having no further assets, was done as part of a response to the group's financial crisis. There was no ulterior motive.

Hobhouse LJ also held, specifically, that the earlier case of Creasey v Breachwood Motors Ltd was wrong.

References

Ord v Belhaven Pubs Ltd Wikipedia


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