The Tartan Army Ltd v Sett GMBH & Ors [2015] ScotCS CSOH_141 (22 October 2015)

The Tartan Army Ltd v Sett GMBH & Ors [2015] ScotCS CSOH_141 (22 October 2015)

The pursuer's pleadings did not disclose any relevant case for holding the third defender personally liable for the acts of Alba Football Fans Limited. There were no averments of fraud, concealment, evasion of legal obligations, or participation by Mr Emerson in the infringing acts beyond his constitutional role as director and shareholder. Mere control and informality in a one-man company do not suffice for personal liability. Accordingly, the action against the third defender is irrelevant and should be dismissed.

Citation
[2015] ScotCS CSOH_141
Parties
Pursuer: The Tartan Army Limited; First Defender: Sett GMBH; Second Defender: Oliver Reifler; Third Defender: Iain Emerson; Fourth Defender: Alba Football Fans Limited
Jurisdiction
Scotland
Judgment Date
22 October 2015
Procedural Posture
Intellectual Property Action / Debate on Relevancy of Pleadings Regarding Personal Liability of Third Defender
Outcome
Action against the third defender (Iain Emerson) dismissed as irrelevant, subject to further procedure discussion.
Legal Topics
Trademark Infringement, Passing Off, Personal Liability of Directors, Corporate Veil, Joint Tortfeasor Liability
Intellectual Property Company Law Trademark Infringement Passing Off Personal Liability of Directors Corporate Veil Joint Tortfeasor Liability

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Parties

The Tartan Army Limited

Pursuer

Sett GMBH

First Defender

Oliver Reifler

Second Defender

Iain Emerson

Third Defender

Alba Football Fans Limited

Fourth Defender

Procedural Posture

Intellectual Property Action / Debate on Relevancy of Pleadings Regarding Personal Liability of Third Defender

Legal Issues

  1. 1 Whether the third defender (sole director/shareholder) can be held personally liable for alleged trademark infringement and passing off by the company (Alba Football Fans Limited)
  2. 2 Whether the pleadings disclose a relevant case for piercing the corporate veil or for joint tortfeasor liability

Ratio Decidendi

The pursuer's pleadings did not disclose any relevant case for holding the third defender personally liable for the acts of Alba Football Fans Limited. There were no averments of fraud, concealment, evasion of legal obligations, or participation by Mr Emerson in the infringing acts beyond his constitutional role as director and shareholder. Mere control and informality in a one-man company do not suffice for personal liability. Accordingly, the action against the third defender is irrelevant and should be dismissed.

Court Disposition

Action against the third defender (Iain Emerson) dismissed as irrelevant, subject to further procedure discussion.

Orders

  • Case to be put out By Order for further procedure discussion before pronouncing interlocutor of dismissal.
  • All questions of expenses reserved.