AMERICAN PROTEIN CORP. v. AB VOLVO

No. 331, Docket 87-7560.

844 F.2d 56 (1988)

AMERICAN PROTEIN CORPORATION, Plaintiff-Appellee, v. AB VOLVO and Volvo Lastvagnar AB, as successors in interest to Beijerinvest AB, Beijer Industries, Inc. and Bo Lycke, Defendants-Appellants.

United States Court of Appeals, Second Circuit.

Decided April 8, 1988.


Attorney(s) appearing for the Case

Frederick L. Whitmer, Morristown, N.J. (Dinah H. Bourne, Betsy L. Weiss, Pitney, Hardin, Kipp & Szuch, Morristown, N.J., of counsel), for defendants-appellants AB Volvo, Volvo Lastvagnar AB, and Bo Lycke.

Daniel A. Pollack, New York City (Pollack & Kaminsky, New York City, of counsel), for plaintiff-appellee American Protein Corp.

Milton D. Andrews, Washington, D.C. (Lance E. Tunick, D. Bruce Sewell, Charles H. Lockwood, II, Gen. Counsel, John T. Whatley, Asst. Gen. Counsel, Schnader, Harrison, Segal & Lewis, Washington, D.C., of counsel), filed a brief on behalf of the Automobile Importers of America, Inc. as amicus curiae.

Before NEWMAN, CARDAMONE, and PIERCE, Circuit Judges.


CARDAMONE, Circuit Judge:

We are presented on this appeal with the issue of when the contractual default of a subsidiary corporation may be visited upon its parents. The question takes on added importance because the parents are Swedish corporations without a presence in New York but nonetheless were held liable for the obligations of their New York subsidiary. Legal liability was fastened on one foreign parent in part because the corporate veil between it and its...

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