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Stromberg
Metal Works v Press Mechanical Inc
77 F 3d 928 [1996]
Author:- Sam
Biers
Joinder
:
Relevant
Facts: Maryland Sub-K’ors (Pl) brought action against Gen. K’or
(Df). Owner’s agent signed K with General K [Press]
where MD law was the applicable law under the K, and all Sub K’s
were bound by the same. General K then signed a Sub K,
Stromberg, to perform HVAC work required by the master K.
Purchase order specified that the work was to be done in “strict
accordance with the plans, specifications, and other K documents
listed below” which included the master K which selects MD
law. Preprinted on the back of each purchase order “This
order shall be governed by the laws of the state of IL. The
K required that Press pay the Sub Ks and then Bechtel would
reimburse Press. Press represented that it had paid, but
had not, and Bechtel reimbursed Press. Press became
insolvent and could not pay. Bechtel refused to pay Sub
directly.
Legal
Issue(s): Whether D Ct had supplemental juris over first Sub-K’or
and whether IL law applied in Sub-Ks’ efforts to pierce
corp. veil and hold alleged controllers of Gen K’or liable
for fraudulent representations?
Court’s
Holding: Yes, and Yes
Procedure:
D Ct dismissed complaint against 1st Sub-K’or
[lack of diversity juris], but enter judgment in favor of General
K’or on remaining claim.
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