Foss v. Harbottle [1843]
(1843) 2 Hare 461, 67 ER 189 · Court of Chancery · England and Wales
Issue
Who is the proper plaintiff for wrongs done to a company?
Held
The company is generally the proper plaintiff.
Exam use
Review the ratio and reasoning before applying this case in problem questions.
Summary
Classic derivative action and shareholder litigation case.
Facts
Issue
Who is the proper plaintiff for wrongs done to a company?
Held
The company is generally the proper plaintiff.
Ratio Decidendi
Wrongs to a company are ordinarily enforced by the company, subject to exceptions.
Reasoning
Essay-Ready Explanation Generator
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Reference to Foss v. Harbottle ((1843) 2 Hare 461, 67 ER 189) strengthens a business associations law answer because the case reflects the principle that Wrongs to a company are ordinarily enforced by the company, subject to exceptions. Applied to a problem question, the case should be used after identifying the issue as Who is the proper plaintiff for wrongs done to a company? The stronger essay move is to connect the material facts to the court's holding, then explain whether the present facts support the same conclusion or justify distinguishing the authority.
Significance
Related Cases
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Exam Tips
Revision Checklist
- Name the issue before discussing facts so the marker sees the legal question immediately.
- State the holding in one sentence, then use the ratio to explain why the court reached that result.
- Use the citation and jurisdiction to show why this authority matters for the problem you are answering.
- Pair this case with one supporting or contrasting authority if the question tests limits, policy, or exceptions.