Liability when uninsured

goz83

If a limited company which has ceased with no assets has no insurance and someone was injured and makes a claim for compensation during the time they were trading, what happens? I can't see anything come from that type of scenario.

An example (not real):

I visit a paintball place called PB Limited somewhere in Ireland. After a gruelling and fun session, I sit down on a chair. Unbeknownst to me, the chair is damaged and there is a nail protruding from the cushion and it sticks into my thigh, causing pain and requiring a visit to the doctor for a jab as well as ruining my favourite jeans. I am unable to sit comfortably for several weeks.

I later make a claim for compensation and I find that the company has ceased trading and the directors say that they had no insurance in place.

Are the directors/owners liable in such cases? I know someone who had such an experience at non paintball related activity and they were told there was nothing they could do. Seems crazy that any such service company, or its directors could operate without insurance, or impunity.

Mr. Incognito

This is legal advice.

You will need to speak to a solicitor.

goz83

Mr. Incognito wrote: »

This is legal advice.

You will need to speak to a solicitor.

This is not a "my friend got hurt" thread. I have not been injured in a paintball accident, or impaled by a nail. I'm not looking for legal advice, I am just curious.

In conversation, I heard of a similar incident that happened a few years ago to someone I know and at the time, they were told the company had ceased trading and there was little point in pursuing them. It's water under the bridge now, but it got me thinking that the directors (who were presumably owners) would have been liable for damages.

hullaballoo

There are a few options in theory in the given situation but tbh, there is massive risk attached to seeking to pursue former directors unless your lawyers know what they're doing. It's the kind of specialised knowledge that isn't as amenable to the "no foal, no fee" kind of arrangement.

The usual caveat around pursuing men or the 2018 equivalent of straw exists. Directors who manage to run a business like paintballing into the ground leaving no assets whatsoever are unlikely to have more than a few buttons personally.

Samuel T. Cogley

There is a company law manual sitting on the shelf but I scared if I open it and look up piercing the veil it's going to push something I need out of my brain! Something to google though OP.

Marcusm

I guess this will partly depend on what you mean by “ceased”; if the company was liquidated prior to the incident then it is unlikely to be held to have been involved in running it. Equally, if it had sold the premises, it presumably would defend itself on the basis that it no longer operated the premises, did not have contractual or occupiers liability with respect to it. In the end of the day, I suspect you would have to find out what persons, human or juristic, owned and/or operated the business/property. If I buy a branch of Tesco and operate it’s a shop, the fact that some minor signs might still have that name on them would surely not attach liability to Tesco Stores Ireland Ltd.

goz83

Marcusm wrote: »

I guess this will partly depend on what you mean by “ceased”; if the company was liquidated prior to the incident then it is unlikely to be held to have been involved in running it. Equally, if it had sold the premises, it presumably would defend itself on the basis that it no longer operated the premises, did not have contractual or occupiers liability with respect to it. In the end of the day, I suspect you would have to find out what persons, human or juristic, owned and/or operated the business/property. If I buy a branch of Tesco and operate it’s a shop, the fact that some minor signs might still have that name on them would surely not attach liability to Tesco Stores Ireland Ltd.

The company was still operating after the injury and looks like it’s still active to this day. Facebook page is active. Website is active. It may have changed hands.

nuac

MOD
You stated that this was not a real situation.

From your last post it seems to be an actual situation

Closed for mod review

Mod

Thread re-opened