Tokyo District Court, 29 November 2005

29 November 2005, 1209 Hanrei Taimuzu 196 (2005)

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Tokyo District Court, 29 November 2005

Tokyo District Court
29 November 2005, 1209 Hanrei Taimuzu 196 (2005)

Facts

A creditor of a company (subsidiary) (plaintiff) sought to have the subsidiary’s parent corporation (parent corporation) (defendant) pay the unpaid contractual debt of the subsidiary. The parent corporation had provided funds to the subsidiary and directed the subsidiary to pay certain debts but not the creditor’s contractual claim. The creditor claimed that the parent corporation had a duty to protect all creditors as a matter of good faith and fairness when the parent corporation undertook to provide funds to the subsidiary to pay some but not all of the subsidiary’s debts.

Rule of Law

Issue

Holding and Reasoning (Per curiam)

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