case Canada English original

Kosmopoulos v. Constitution Insurance Co.

Supreme Court of Canada decision refusing to lift the veil for a sole shareholder's own benefit while recognizing his insurable interest through insurance-law principles.

Brief English Introduction

The case shows why courts are wary of letting shareholders invoke veil piercing to escape burdens of incorporation, even when ordinary private law may still supply a remedy.

Use It For

Use it with insider reverse-piercing materials and Macaura to ask who is asking the court to disregard personality, and whose interests would be harmed.

Teaching Notes

The court’s refusal to lift the veil is as important as the insurance-law result: the shareholder got a remedy without erasing corporate personality.