Lee versus Lee's Air Farming Ltd
It is one of the cases where the veil of incorporation principle applied. Other cases include Salomon versus Salomon & Co. Ltd and Macaura versus Northern Insurance Co.
Some FACTS about the case
Mr Lee formed and owned his company -Lee's Air Farming Ltd. Besides being the sole director for the company, he also worked as chief pilot. Unfortunately, he was killed in plane crash. His wife wanted a compensation from Workers' Compensation Act 1922, however under this Act, Mr Lee has to be an employee in order to get the claim. The legal issue here is whether the company Mr Lee owned is a separate legal entity which will decide whether Mrs Lee can claim for the compensation.
It was held that the company is a separate legal entity and Mr Lee can be an employee for the company he owned thus Lee's Air Farming Ltd. was liable to pay Mrs Lee the compensation.
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