LEGAL ISSUES

Separate Legal Personality Issues

Separate Legal Personality Issues

Introduction

Adams v Cape Industries is one of the leading company laws in UK. The law is based on how a separate legal entity is supposed to and how the limited liability consideration of the people is needed to be taken care of. There were some long standing issues that were needed to be resolved when one talks about the English conflict laws and due to that, when there is a situation that the company belongs to the foreign descendant, the foreign laws would be overruling the local laws. The laws of the English courts thus would follow the judgment of the foreign courts if there is such a situation.

Discussion

Before moving on any further with the analysis of the law, it is important that one must be able to understand what is in the background of the whole thing. And most important way to look at that is to carry out the analysis of the case Adams v Cape Industries [1990). It all started when Cape, which was an English company started to work in the whole thing. What they were doing is that they were heading a group that contained lot of subsidiaries.

At the same time, there were masked asbestos in some of the other parts of the countries. It was noticed that with the passage of time, there were several hundreds of plaintiffs that were awarded damages by the court of Texas. These injuries were caused due to the fact that the defendant contained one of the caped subsidiaries with the name of the Cape's Subsidiaries that had the name NAAC. That subsidiary was based in Illinois. The court of Appeal when one looks at it was of the point of view that some of these judgments cannot be enforced as the company was actually from United Kingdom, and due to that, there were some legal complexities that were needed to be taken care of. These were some of the repercussions of the case.

Some of the Facts about the Case

The Cape industries that was the pat of the UK group, and it had shared mined asbestos in the South Africa was under the cloud for some time. The reason is that when they were shipped to the Texas, the marketing subsidiary that was already operating with the name of the NAAC that was originally supplying asbestos to another company that was the part of the Texas group. When one looks at the employees of that company of the Texas, it was pretty much evident that there was going to be the conflict of the laws. When the situation came that the employees of the NAAC were infected with the diseases of the asbestosis. The Cape and its related some of the other subsidiaries were sued as a result as the judgment came from the court of the Texas.

Cape was of the point of view that the courts of the Texas had no jurisdiction to hear the ...