Asea, Inc. v. Southern Pacific Transportation Company, a Corporation, and Harbor Belt Line, a Partnership

Southern Pacific Transportation Co. and Harbor Belt Line (the railroads) appeal from a judgment entered in favor of Asea, Inc. (Asea) and from the denial of their motion for a new trial. The railroads’ principal contention in this appeal is that the district court erred in ordering admitted certain matters the railroads failed to admit or deny in response to requests for admissions served by Asea. We affirm in part and vacate and remand in part.

I

Asea, a New York corporation, is the sole United States distributor of electrical transformers manufactured in Sweden by Asea A/B, a Swedish corporation. Asea sold a transformer to the Los Angeles Department of Water & Power. The transformer was transported by merchant vessel from Sweden to the Los Angeles harbor. Pursuant to their contract with Asea, the railroads then took custody of the transformer and shipped it to North Hollywood, California. Upon its arrival, the transformer was inspected by representatives of the railroads and Asea. It was found that the transformer had shifted on the railroad car during transit despite being shored and braced. An electrical check revealed the transformer had shorted. Asea had installed an…