Ord v Belhaven Pubs Ltd
1998 · [1998] 2 BCLC 447 (CA)
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- Facts
- Tenants sued a company for . The group was later restructured and the company's assets moved elsewhere. The tenants sought to substitute the parent company as .
- Issue
- Could the parent be substituted on the ground that the company had been stripped of assets?
- Held
- No. The restructuring was a genuine one, not a device to evade liability. The Court of Appeal overruled Creasey v Breachwood Motors.
- Principle
- A company in a group is not liable for another's debts just because assets have been moved within the group.
- Why it matters
- It overruled Creasey v Breachwood Motors [1993] BCLC 480.
Words and Latin in this note
- Misrepresentation
- A false statement of fact, made before the contract, which induced the other party to enter it. The contract may be rescinded, and damages may follow. Open the note.
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