Stromberg Metal Works v. Press Mechanical Inc Case Brief

Summary of Stromberg Metal Works v. Press Mechanical Inc
77 F 3d 928 [1996]


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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