Pacific States Steel Corporation, a Corporation, and American Forge Co., a Corporation, and v. Isaacson Iron Works, a Corporation, And

This is a diversity action between corporations. Appellee is incorporated in and has its principal place of business within the State of Washington. Appellants are incorporated in and have their principal place of business within the State of California. The matter in controversy exceeds exclusive of costs and interest, the sum of $10,000. 28 U.S.C. § 1332 . Jurisdiction on appeal rests on 28 U.S.C. § 1291 .

This also involves a cross-appeal. Plaintiff below, Isaacson Ix*on Works (here both appellee and appellant) will be referred to as “plaintiff” or “Isaac-son.” Pacific States Steel Corporation and American Forge Company (here both appellees and appellants) will be referred to jointly as “defendants,” and individually as “Pacific” or “Forge, respectively.

Plaintiff sued in Count I on an open book account, and in Count II on an account stated. Defendants counterclaimed for an offset, charging defective merchandise was delivered.

It seems clear (and it was stipulated between the parties) that California law applied.

Plaintiff forged, fabricated and manufactured steel. Defendant Forge manufactured and processed steel. From 1952 on, plaintiff sold some $886,000 worth of steel to…