SEA-LAND SERVICES, INC V. PEPPER SOURCE
941 F.2d 519 (7th Cir. 1991)
NATURE OF THE CASE: Pepper Source (D), individual debtor and his corporations, appealed a summary judgment for Sea-Land (P), judgment creditor, which held D jointly liable for P's $87,000 judgment and post-judgment interest in its suit to pierce the corporate veil and find alter-ego status.
FACTS: P shipped the peppers on behalf of D. D then stiffed P on the freight bill, which was rather substantial. P filed a federal diversity action and the district court entered a default judgment in favor of P in the amount of $86,767.70. D was no-where to be found; it had been 'dissolved' in mid-1987 for failure to pay the annual state franchise tax. D apparently had no assets. P could not recover its judgment against D. P then brought this action against Gerald J. Marchese and five business entities he owns: PS, Caribe Crown, Inc., Jamar Corp., Salescaster Distributors, Inc., and Marchese Fegan Associates. P to pierce D's corporate veil and render Marchese personally liable for the judgment and then 'reverse pierce' Marchese's other corporations so that they, too, would be on the hook for the $87,000. P alleged that all of these corporations 'are alter egos of each other and hide behind the veils of alleged separate corporate existence for the purpose of defrauding plaintiff and other creditors.' P filed an amended complaint adding Tie-Net International, Inc. Tie-Net is half owned by Marchese and George Andre. P moved for summary judgment. The court granted P's motion. The court discussed and applied the test for corporate veil-piercing explicated in Van Dorn Co. v. Future Chemical and Oil Corp. D appealed.
ISSUE:
RULE OF LAW:
HOLDING AND
DECISION:
LEGAL ANALYSIS:
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