Hardwicke’s Nigel Jones QC and David Lewis represented the first defendant Nutritek in this landmark appeal. The decision of the court of appeal on the limits of piercing the corporate veil resolves the two very different approaches taken by judges in the commercial court and the chancery division over how this jurisdiction should be developed.
Mr Justice Burton in the commercial court had developed the jurisdiction in Gramsci v Stepanovs so that in certain circumstances a court could pierce the corporate veil so as to hold the controller of the company liable as a party to that company’s contract. Mr Justice Arnold in the Nutritek case took a different view and the claimant appealed. Gramsci has now been overruled and the court of appeal has given valuable guidance on the purpose and limits of the jurisdiction to pierce the corporate veil.
Click here for Judgment: VTB Capital Plc v Nutritek International Corp & Ors  EWCA Civ 808 (20 June 2012)