Reference Case: Zibo Sichuang Glass Fiber Co., Ltd. v. Taixing Gelaide Specialty Textiles Co., Ltd., Wuxi Fushide Specialty Glass Fiber Co., Ltd., and Taixing Beisida Specialty Textiles Co., Ltd.
In a sales-contract dispute affirmed on appeal, the Yiyuan County People's Court held that Gelaide, Fushide, and Beisida had become commingled because they repeatedly mixed company identities in contracting, account reconciliation, delivery, seal use, advertising, and personnel arrangements, while their controllers were closely related family members. The court concluded that the creditor had in substance dealt with the three-company whole rather than any one separate corporation, and ordered all three companies to satisfy the outstanding price and interest jointly.
Holding
In a sales-contract dispute affirmed on appeal, the Yiyuan County People's Court held that Gelaide, Fushide, and Beisida had become commingled because they repeatedly mixed company identities in contracting, account reconciliation, delivery, seal use, advertising, and personnel arrangements, while their controllers were closely related family members. The court concluded that the creditor had in substance dealt with the three-company whole rather than any one separate corporation, and ordered all three companies to satisfy the outstanding price and interest jointly.