Britain's top court on Wednesday handed an oil tycoon a
costly setback in a divorce case, ruling he must give his ex-wife assets held
by companies he owns.
In a case with significant implications for wealthy
divorcing couples, the Supreme Court ruled that Nigeria-born Michael Prest
should surrender seven properties to his English former wife, Yasmin.
The couple, now in their 50s, married in 1993 and lived in
Britain before divorcing in 2011. Michael Prest was ordered to transfer the
properties as partial payment of a 17.5 million pound (about $27 million)
settlement.
He challenged that decision, and last year the Court of
Appeal ruled that the companies constituted a separate legal entity and couldn't
be included in the divorce.
But seven Supreme Court justices ruled the properties were
assets to which Michael Prest was "entitled" and should be included
in a divorce settlement.
The court insisted it wasn't establishing a general
principle allowing courts to "pierce the corporate veil" and seize
assets in divorce cases. But legal experts said the judgment was still
significant.
"The Supreme Court has handed down a landmark
decision in which, for the first time since at least the end of the 19th century,
it has accepted a general exception to the rule against 'piercing the corporate
veil,'" said Michael Hutchinson, a partner at law firm Mayer Brown.
"This is an extraordinary decision and the
implications for corporate governance are potentially huge."
Yasmin Prest said the judgment was "more a case of
satisfaction and relief than celebration. None of this would have been
necessary if Michael had been sensible and played fair."
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