Daimler Company v. Continental Tyre and Rubber Company (Great Britain)
United Kingdom House of Lords
House of Lords 1916

- Written by Deanna Curl, JD
Facts
Continental Tyre and Rubber Company (Continental) (plaintiff) was registered and doing business in the United Kingdom (the UK) with Daimler Company (Daimler) (defendant). All of Continental’s directors and shareholders were German, except for one secretary who was not authorized to act on Continental’s behalf and held only one share out of 25,000 shares in the company. When war broke out with Germany, Daimler stopped trading with and paying Continental because it thought doing so would violate the Trading with the Enemy Act of 1914. Continental then sued Daimler for outstanding payments. The lower court held that Continental was not considered an enemy of the king for trading purposes because all enemy officers effectively vacate their offices on becoming enemies and shareholders do not affect the calculation at all. The court of appeal affirmed, and Daimler appealed to the House of Lords.
Rule of Law
Issue
Holding and Reasoning (Lord Parker of Waddington, J.)
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