Daimler Co Ltd v Continental Tyre and Rubber Co (Great Britain) Ltd

Facts

An English-registered company sued for a debt during the First World War. All but one of its shares were held by Germans, and its directors were German.

Issue

Could the company sue in the English courts, or did it have enemy character?

Held

The House of Lords held that a company may assume an enemy character where those in de facto control are enemies, and the action could not go on in that form.

Principle

In wartime the court may look at who controls a company to decide its character.

Why it matters

It is an early example of looking behind the company.

For study only. By lanbuk.com. Always check current sources and consult a qualified professional.