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Citicorp, the owner of both Diners Club and Carte Blanche, merged the two credit card firms into one firm, giving Diners Club the dominant voice.

Citicorp, the owner of both Diners Club and Carte Blanche, merged the two credit card firms into one firm, giving Diners Club the dominant voice. Diners Club then ceased Carte Blanche’s long-standing assistance to Carte Blanche Singapore (CBS). CBS sued Diners Club, claiming that it owned CBS a duty to continue providing services. CBS argued that because Carte Blanche and Diners Club were essentially the same firm, the court should pierce the corporate veil and hold Diners Club responsible for Carte Blanche’s failure to provide services to CBS. How do you think the court ruled in this case? Why?

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