Quimbee logo
DMCA.com Protection Status

Sea-Land Services, Inc. v. Pepper Source

993 F.2d 1309 (1993)

Case BriefRelatedOptions
From our private database of 26,900+ case briefs...

Sea-Land Services, Inc. v. Pepper Source

United States Court of Appeals for the Seventh Circuit

993 F.2d 1309 (1993)

Facts

Sea-Land Services, Inc. (Sea-Land) (plaintiff) filed a complaint against Pepper Source (PS) (defendant). The suit alleged that PS never paid for the peppers Sea-Land had shipped. Sea-Land claimed that PS’s owner, Gerald J. Marchese (defendant), had assured Sea-Land that PS would pay for the shipment if it had sufficient funds. The district court entered a default judgment for Sea-Land. PS was ordered to pay the amount owed. However, at the time of the judgment, PS was dissolved and assetless. In response, Sea-Land filed suit against Marchese and against other business entities that Marchese owned. The suit alleged that Marchese’s corporations were alter egos of Marchese and of each other and that the companies were created to defraud creditors. Therefore, Sea-Land sought to pierce PS’s corporate veil to declare Marchese personally liable for the money owed and then reverse pierce Marchese’s business entities. At trial, Sea-Land presented evidence that Marchese had used PS’s funds to pay for personal expenses and the expenses of his other business entities. Sea-Land also introduced testimony from multiple accountants, claiming that Marchese had withdrawn corporate funds so that the corporation was insolvent and so that any monetary obligations could be avoided. The district court held that Sea-Land had satisfied the two-prong test for corporate veil-piercing and entered judgment for Sea-Land. PS appealed on the ground that Sea-Land had provided insufficient evidence to satisfy the second prong of the two-prong test.

Rule of Law

Issue

Holding and Reasoning (Timbers, J.)

What to do next…

  1. Unlock this case brief with a free (no-commitment) trial membership of Quimbee.

    You’ll be in good company: Quimbee is one of the most widely used and trusted sites for law students, serving more than 541,000 law students since 2011. Some law schools—such as Yale, Berkeley, and Northwestern—even subscribe directly to Quimbee for all their law students.

    Unlock this case briefRead our student testimonials
  2. Learn more about Quimbee’s unique (and proven) approach to achieving great grades at law school.

    Quimbee is a company hell-bent on one thing: helping you get an “A” in every course you take in law school, so you can graduate at the top of your class and get a high-paying law job. We’re not just a study aid for law students; we’re the study aid for law students.

    Learn about our approachRead more about Quimbee

Here's why 541,000 law students have relied on our case briefs:

  • Written by law professors and practitioners, not other law students. 26,900 briefs, keyed to 983 casebooks. Top-notch customer support.
  • The right amount of information, includes the facts, issues, rule of law, holding and reasoning, and any concurrences and dissents.
  • Access in your classes, works on your mobile and tablet. Massive library of related video lessons and high quality multiple-choice questions.
  • Easy to use, uniform format for every case brief. Written in plain English, not in legalese. Our briefs summarize and simplify; they don’t just repeat the court’s language.

Access this case brief for FREE

With a 7-day free trial membership
Here's why 541,000 law students have relied on our case briefs:
  • Reliable - written by law professors and practitioners, not other law students
  • The right length and amount of information - includes the facts, issue, rule of law, holding and reasoning, and any concurrences and dissents
  • Access in your class - works on your mobile and tablet
  • 26,900 briefs - keyed to 983 casebooks
  • Uniform format for every case brief
  • Written in plain English - not in legalese and not just repeating the court's language
  • Massive library of related video lessons - and practice questions
  • Top-notch customer support

Access this case brief for FREE

With a 7-day free trial membership