Fruit Industries Research Foundation, D/B/A Food Industries Research & Engineering v. The National Cash Register Company

This appeal is from the District Court’s order dismissing with prejudice, at the close of presentation of evidence to a jury, a civil action prosecuted by the appellant. That suit was based on alleged fraudulent misrepresentation. Jurisdiction of the District Court was predicated on 28 U.S.C. §§ 1332 and 1441, and the applicable law is that of the State of Washington. Our jurisdiction rests on 28 U.S.C. § 1291 .

Appellant, Food Industries, purchased a data processing computer, known as the NCR390, from appellee, National Cash Register (hereafter N.C.R.). Food Industries claims that N.C.R., through its sales agent, one Rasmussen, fraudulently misrepresented that the NCR390 was suitable, appropriate, and adequate for service bureau data processing and computer work and that N.C.R. would aid and assist Food Industries by referring customers to Food Industries’ computer service bureau so that there would be no need for Food Industries to maintain a sales force of its own to procure patronage.

The District Court determined that Food Industries had failed as a matter of law to present sufficient evidence from which a trier of fact could properly find from clear, cogent, and convincing…