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Business Organizations Keyed to Allen
Sea-Land Services, Inc. v. The Pepper Source
Citation:
941 F.2d 519 (7th Circ. 1991).Facts
In December 1987, Sea-Land obtained a default judgment for $86,767.70 against PS for an unpaid freight bill. However, PS was “dissolved” in mid 1987 for failure to pay an annual state franchise tax. In June 1988, Sea-Land brought suit against PS and Marchese’s various other businesses in order to collect on the judgment alleging that the entities were alter-egos of each other and Marchese. Tie-Net was added as a defendant in 1989 and PS was reinstated after this suit was filed. Marchese was the sole owner of all of the companies except for Tie-Net. Marchese ran all six of the companies out of the same office with the same phone line and expense account. Marchese also regularly “borrowed” money from the companies and used funds from the business for various different personal expenses.
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