Royal Dutch Petroleum Co. v. Shell Transport and Trading Co.

Royal Dutch Petroleum Co. v. Shell Transport and Trading Co. was a legal case involving two companies that were part of the same group but operated as separate entities. The dispute centered on whether the parent company (Royal Dutch) was liable for the debts of its subsidiary (Shell Transport). The court ruled that because the companies maintained distinct legal identities and proper corporate formalities, Royal Dutch was not responsible for Shell’s obligations. This case highlights the importance of respecting separate corporate entities to limit liability, even when companies are closely linked economically.