Government of Iraq v. Robert W. Hunt Company

On April 23, 1962, the Government of Iraq filed a complaint in the district court for breach of contract, rescission, fraud and exemplary damages against sellers of military spare parts (principally L. A. Parts Co., Inc., a corporation) and against appellee corporation, a spare parts inspector. The jurisdiction of the district court was invoked under the diversity of citizenship provision. (28 U. S.C. § 1332(a) (2).) Judgment was sub sequently entered in favor of plaintiff against the defendant parts sellers, but, by separate judgment, recovery was denied against the parts inspector, appellee Robert W. Hunt Company. It is from this latter judgment that plaintiff now appeals. Jurisdiction of this court rests on 28 U.S.C. § 1291 .

We hold the findings of fact of the district court are supported by substantial evidence in the record. We extract from those findings and the record the following pertinent facts:

The Government of Iraq entered into three separate agreements with the L. A. Parts Company for the purchase of surplus military parts and equipment. The first two agreements merely provided that “inspection certificates” accompany the goods. (Pltff’s Exs. 62, 126.) The content…