Adams v Cape Industries plc: ChD 1990

The piercing of the veil argument was used to attempt to bring an English public company, which was the parent company of a group which included subsidiaries in the United States, within the jurisdiction of the courts of the United States. Where a foreign judgment is impeachable on the ground of denial of procedural fairness, its enforcement would be contrary to public policy.
Scott J cautioned against ignoring the principle in Salomon merely because justice may be seen to require it, but at the same time recognised that the question is in each case the fact of presence and not some law of individual personality.
An agreement to accept jurisdiction must be express and cannot be implied.
Scott J
[1990] 1 Ch 433, [1990] BCLC 479; [1990] 2 WLR 657, [1991] 1 All ER 929, [1990] BCC 786
England and Wales
CitedSirdar Gurdyal Singh v The Rajah of Faridkote PC 28-Jul-1894
(Punjab) THe Rajah of Faridkote had obtained in the Civil Court of Faridkote (a native state) ex parte judgments against Singh (his former treasurer), which he sought to enforce in Lahore, in British India. Singh was not then resident in Faridkote . .
Wrongly decidedBlohn v Desser 1962
The plaintiff had obtained a default judgment in Austria against an Austrian partnership, and sought to enforce it in England against an English resident who was a sleeping partner in the firm. Her name was registered as a partner in the commercial . .

Cited by:
Appeal fromAdams v Cape Industries plc CA 2-Jan-1990
Proper Use of Corporate Entity to Protect Owner
The defendant was an English company and head of a group engaged in mining asbestos in South Africa. A wholly owned English subsidiary was the worldwide marketing body, which protested the jurisdiction of the United States Federal District Court in . .
CitedVizcaya Partners Ltd v Picard and Another PC 3-Feb-2016
No Contractual Obligation to Try Case in New York
(Gibraltar) The appellant had invested in a fraudulent Ponzi scheme run by Bernard Madoff. They were repaid sums before the fund collapsed, and the trustees now sought repayment by way of enforcement of an order obtained in New York.
Held: The . .

Lists of cited by and citing cases may be incomplete.
Updated: 10 August 2021; Ref: scu.519365