W.L Construction Limited -v-
Charles Chawke and Edward Joseph Bohan [2015] IEHC 92
 |
| Nath Solicitors |
The protection
given to directors through the corporate structure, otherwise known as the
“corporate veil” can be lifted as seen in the matter of Mr William Loughnane of
W.L Construction Limited (“Company”).
Ø
Mr
Loughnane brought a case against Mr Charlie Chawke for renovation works done to
Mr Chawke’s pub. The case which was subsequently dismissed as it was held that
the evidence brought forward by Mr Loughnane was “tainted by lies and
dishonest”. There was also further doubt on the evidence of the
company’s expert quantity surveyor.
Ø The Company had claimed that Mr Chawke
had owed €370,000 for the work that it had carried out, however it was later
discovered that the actual value had not exceeded €28,691.
Ø The defendant’s application to have
the matter struck out was granted as Mr Justice Noonan found there to be an
abuse of the courts process and the Company had failed to establish that it had
a case against the defendant.
Ø Mr Loughnane joined Mr Chawke as a
co-defendant the purposes of costs of the dismissed case. Mr Justice Noonan
ruled that only Mr Loughnane was responsible for bringing forward the claim and
for the result and accordingly should be held liable for the costs incurred in
the matter.
Ø A 21 day stay currently applies and
the written judgement is yet to be made.The decision clearly shows that the
corporate veil will be lifted, taking the directors protection from liability
along with it should, of course the circumstances require. The court will
not tolerate any misconduct in litigation and company directors should take
this as a stark warning.The above does not constitute legal advice and is
intended for general guidance.
Nath solicitors is a specialist
boutique law practice based in London. We
are litigation solicitors in dulwich can help you in such kind of situation
i.e. Disputes /
litigation matters including property disputes in affordable price.
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Details:
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London,SE21 8AD
London,SE21 8AD
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