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Colgate-Palmolive Co. v. Lanfranchi N. Am. Inc.

Court Explains Reason to Pierce Italian Firm's Veil as Contract Party's Alter Ego

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OPINION AND ORDER Plaintiff Colgate-Palmolive Company (“Colgate”) brings this action against Defendants Lanfranchi S.r.l (“Lanfranchi”), and its subsidiary, Lanfranchi North America, Inc. (“Lanfranchi N.A.”) for breach of contract (Count I), breach of express warranty (Count II), and breach of the implied covenant of good faith and fair dealing (Count III). (ECF No. 1 or Compl. at

57-75). Defendants now move to dismiss all claims against Lanfranchi, and Plaintiff’s implied covenant claim. Defendants’ motion with respect to dismissing Lanfranchi is DENIED, however, the motion to dismiss the implied covenant claim is GRANTED. BACKGROUND Colgate is a global corporation that produces and distributes oral care, personal care, home care, and pet products. (Id. at 4). Colgate is incorporated in Delaware and maintains its principal place of business in New York. (Id.) Lanfranchi is a family-owned business organized under the laws of Italy that specializes in the design, manufacturing, and marketing of machinery for product assembly lines involving plastic bottles and containers. (Id. at 5). Lanfranchi N.A. is a wholly-owned subsidiary of Lanfranchi, organized under the laws of Florida with a principal place of business in Florida. (Id. at 6). In 2013, Colgate entered into an agreement with Lanfranchi N.A. for the purchase of equipment needed for Colgate’s high-speed, liquid hand soap assembly line at its Greenwood, South Carolina manufacturing facility. (Id. at

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