Can my neighbour transfer a property to a limited company to avoid liabilty in respect of accident or injury?
The neighbour owns an outbuilding overlooking my property. He uses it as a storeroom and is unable to get residential planning permission. The property is in a dreadful state of repair but the council refuse to condemn it. I have asked him many times to make it safe but he doesnt want the expense and wants me to buy it from him but I cannot afford to. Ive told him that im worried that falling masonary or tiles could cause serious injury to my family but he's unmoved. Ive warned him that he would be liable if something bad happened but he says that he can set up a limited company, transfer the property to it and he would no longer have any liability. Does anybody know if this is correct or what else I can do? Thank you for taking the time to read of my problem.
Answers:
As you have used the phrase "limited company" I'm guessing you're from the UK so I'll answer as such.
Good news. He is in for a nasty surprise. The courts can "lift the corporate veil where the company is a sham. In addition, the officers can be held personally liable for criminal or negligent acts. Now, if he puts the ownership of the company into a trust it gets a bit messy. It also costs a lot of money in legal and accounting fees each year, which he may as well spend on making things safe.
If something does happen, you can sue, you will probably win and the property will most likely end up getting sold to settle the claim.
Have you thought of involving the local council to have it condemned? If it is that unsafe and you have tried to be reasonable, one can hardly blame you for taking such action.
Depends on the laws in your state, but as a rule LLC and Inc. are used to protect assets...
You would be able to get at those assets if you can prove that the LLC is just the "alterego" of your neighbor - which from what you have described, should not be difficult to do. It will just take time and an attorney
It sounds like your council is prejudiced against you and in favor of your neighbor. Towns are sometimes controlled by cliques of families who run the local government to benefit their own, no matter what harm is done to others. You should be able to be protected by your local government code enforcement. so that your family does not get hurt. When they do not help, it is a sign of corruption.
If the town is like that, probably the local courts are, too.
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