Islamic Republic of Iran, Air Force of the Islamic Republic of Iran v. The Boeing Company and Logistics Support Corporation

The Islamic Republic of Iran (Iran) appeals an adverse judgment on counterclaims brought by the Boeing Company (Boeing) and Logistics Support Corporation (LSC). The district court had jurisdiction under 28 U.S.C. § 1332 (a)(4). Since the order from which Iran appeals disposes of all remaining claims in this action, we have jurisdiction pursuant to 28 U.S.C. § 1291 . We affirm in part, reverse in part, and remand with instructions.

I

On May 8, 1979, Iran filed complaints against Boeing and LSC for $75,000,000 in damages resulting from the crash of a Boeing 747 aircraft owned by Iran, alleging defects in the aircraft manufactured by Boeing and inadequate support services provided by LSC under the Operations Support Contract (contract). In its answer, LSC asserted a compulsory counterclaim. On June 2, 1980, the district court granted summary judgment in favor of Boeing and LSC on Iran’s claims, but did not decide LSC’s counterclaim. We initially dismissed Iran’s appeal from the summary judgment because the compulsory counterclaim had not been decided; thus, a final judgment had not been reached. Islamic Republic of Iran v. Boeing Co., No. 80-3255 (9th Cir. Mar. 5, 1981)…