case United States English original

Sea-Land Services, Inc. v. Pepper Source

Seventh Circuit case explaining the two-part Illinois veil-piercing inquiry: unity of interest and ownership, plus fraud or injustice beyond the mere existence of an unpaid judgment.

Brief English Introduction

The case shows why evidence of commingling and domination is not always enough; courts also ask what kind of fraud or injustice would result from respecting separate personality.

Use It For

Use this when students reduce veil piercing to a checklist. It forces them to identify the legal wrong that makes limited liability abusive.

Teaching Notes

Compare the “promote injustice” analysis with Chinese courts’ emphasis on serious damage to creditors under Company Law Article 23.