Shandong Yinguang Chemical Industries Joint Stock Co. v. Potter

Appellant Shandong Yinguang Chemical Industries Joint Stock Co., Ltd., (“Yinguang”) sold explosive chemicals to Beston Chemical Corporation (“Beston”), a company wholly-owned by Appellee Michael Potter. Beston failed to make payments on two contracts and subsequently declared bankruptcy. In an effort to recover its losses, Yinguang sued Potter personally for common law fraud and fraudulent inducement, and sought to impose personal liability by piercing Beston’s corporate veil. The district court dismissed the case, finding that Yinguang failed to meet the pleading requirements of Fed.R.Civ.P.…