Transpac Construction Co., Inc., a California Corporation v. Clark & Groff, Engineers, Inc.

Transpae Construction Co., Inc. (Transpae) brought this Oregon diversity action against Umpqua Basin Water Association, Inc. (Umpqua), Clark & Groff, Engineers, Inc. (Clark & Groff), and Arthur V. Faulkner, to recover damages in the sum of eight hundred and fifteen thousand dollars for negligent and intentional interference with the performance of a contract. The contract is one under which Transpae undertook to install, for Umpqua, a pipeline for a domestic water supply system in Rose-burg, Oregon. Clark & Groff engineered the water supply system and supervised its installation. Faulkner served as Umpqua’s resident engineer on the project.

A trial was had before United States District Judge Gus J. Solomon on limited issues, including the issue of whether Umpqua and Transpae compromised and settled Transpac’s claim against Ump-qua. As aresult of this trial, and on October 22, 1969, Judge Solomon entered findings of fact (amended November 17, 1969), conclusions of law, and a judgment dismissing the action as to Umpqua. Transpae took a timely appeal from this judgment.

On March 13, 1970, the parties entered into a stipulation under which the action was dismissed as to Faulkner.…