Article from: TDM 5 (2007), in Case Comments & Awards
Being successful in arbitration may be of little use when damages are awarded against a shell company with no assets.
Described by The Hon. Mr Justice Warren, sitting in the English Chancery Division, as a " bitter family feud" , this case highlights the pyrrhic nature of a victory in arbitration against a shell company with no assets. In refusing to make the owners of a company liable for the damages awarded against the company in arbitration, Warren J rejected arguments based on 'piercing the corporate veil'. He also rejected the argument that the owners of the company, although not parties to the arbitration, were nonetheless privies to the arbitration such that an estoppel ...