Sea-Land Services, Inc. v. Pepper Source
United States Court of Appeals for the Seventh Circuit
941 F.2d 519 (1991)
Relevant factsFree
Gerald Marchese (defendant) ran six commonly-owned, undercapitalized shell businesses with no corporate formalities, freely commingling their funds and lending himself money; when one, Pepper Source, failed to pay Sea-Land (plaintiff) for shipping services and was dissolved for unpaid taxes, Sea-Land sued to pierce Pepper Source's veil to reach Marchese personally, and to "reverse pierce" into his other companies, and the lower court allowed both.
IssueFree
Whether, when multiple companies share all their funds and staff with each other and with their owner, a creditor to one of those businesses can collect its debt from the other companies.