On this page you will find analysis on a range of Company Law cases. If you are looking for a case that has not been added, please get in touch and the case will be added to the website as soon as possible.
Williams v Natural Life Health Foods Ltd [1998] 1 WLR 830 (HL)
The company was effectively run by one person, Mr Mistlin. Negligent advice regarding the viability and profitability of a franchise had been given to the claimant. When the company was being wound up, the claimant sought to join Mr. Mistlin as a defendant on the ground that he assumed personal responsibility for the advice given to the claimant by the company. The House of Lords was unanimous in its rejection of the claim, holding that the Court of Appeal had been wrong in finding that Mr. Mistlin had assumed personal responsibility to the claimant. It was held that for a director to be personally liable for negligent advice given by the company, it had to be shown both that the director had assumed personal responsibility for that advice and that the claimant had reasonably relied on the assumption of that responsibility. This was not found to be the case as there had been no personal dealings between Mr. Mistlin and the claimant. The House of Lords refused to lift the corporate veil to find the managing director and sole shareholder accountable for the tort suffered by the claimant.
