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Term: legal person

1.

A legal person in English law is an entity that has standing to sue or be sued in English Courts. These entities include natural persons, companies limited by shares, companies limited by guarantee, public limited companies, sole traders, partnerships, limited liability partnerships and unincorporated associations.

Whether or not an entity is a legal person or not is important because to commence proceedings against a defendant in English courts, a claimant is required to identify the proper defendant – that is, the relevant legal person against which to commence legal proceedings. Selecting the incorrect legal person for the cause of action will mean that claim is doomed to failure, as the person alleged to have committed the wrong against the claimant will not be the legal person that is liable for the wrong.

Dissolved Companies

A company which has been dissolved or struck off the English Register of Companies may not be sued while it remains dissolved. The company however may be restored to the Register and thereafter sue.

Foreign Companies

Foreign corporations are entitled to sue and be sued in the UK, provided that they are properly constituted in under the lex domicilii. The same applies to entities formed under the laws of a territory which is not recognised as a State (i.e. a country) under English law provided that there is a justice system in place in the territory that determines disputes.

Other countries recognise legal persons that are not recognised in England. Where the corporate status of the foreign entity is recognised in English courts it is likely that the entity will be permitted to proceed provided that it is recognised as a legal entity in its lex domiclii. For example, in one case, a temple was considered a legal person in India, and commenced proceedings in England with a view to recovering that was seized from the temple. According to principles of English private international law, because the temple was considered a legal person in India and entitled to sue and be sued, the English High Court recognised it as a legal person for the purposes of English law and permitted it to continue the proceedings. Had the facts been the same other than the location of the temple being in England (and for that matter, any other country where a temple does not have status as a legal person), the proceedings would have been struck as a temple does not have any legal personality in England.

Foreign States

As a general rule, foreign States that are recognised by English law may sue and be sued in England. Foreign States that are not recognised by English law may not sue or be sued in England. Provided that the Foreign Office recognises the State, the English courts will grant the entity locus standi in English courts. During a time of war, enemy aliens are prevented from commencing or continuing proceedings in English courts.

Usage: The legal person had locus standi for the damages claim.

Related Words: separate legal personality; corporate veil; unincorporated association; limited liability partnership; company; partnership; sole trader; locus standi; limited liability; contract.


 

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