| Restrictions | OK |
|---|---|
| Jurisdiction | Employment Relations Authority - Auckland |
| Reference No | AA 404/10 |
| Determination date | 07 September 2010 |
| Member | D King |
| Representation | B Edwards ; T Wallace, A Caisley |
| Location | Auckland |
| Parties | Carter v Vanda Wholesale Blind Co Ltd and Anor |
| Other Parties | Vanda Holdings Ltd |
| Summary | PRACTICE AND PROCEDURE – Applicant filed amended statement of problem alleging had been employed by both respondents – Claimed second respondent attempting to hide behind corporate veil to avoid obligations to applicant – First respondent opposed application for joinder of second respondent – Authority found no grounds for piercing corporate veil – Found respondents had different directors and while common shareholders also shareholders that did not hold shares in both companies – Found first respondent not subsidiary of second respondent – Discussed authority that Courts would not interfere with lawfully created entities provided structures genuine and intended to operate in accordance with their tenor; and transactions would be enforced even if were for ulterior commercial purpose – Found parties could choose whatever legal arrangements they wanted provided not shams – Authority discussed broad grounds to lift corporate veil – Found respondents distinct legal entities – Found nothing fraudulent, underhand, or nefarious in creation of respondents – Found fact there were family connections did not alter situation – Found neither company established or used to avoid existing legal duty – Found applicant not also employee of second respondent – Found no grounds to lift corporate veil – Orders made |
| Result | Application dismissed ; Orders made ; Costs reserved |
| Main Category | Practice & Procedure |
| Cases Cited | The Official Assignee as Assignee of the Bankrupt Estate of Alan Cliff Armitage v Sanctuary Propvest Ltd unreported, HC AK CIV-2009-404-0852, 11 June 2009, Asher J;Square 1 Service Group Ltd v Butler [1994] 1 ERNZ 667 |
| Number of Pages | 4 |
| PDF File Link: | aa 404_10.pdf [pdf 18 KB] |