Hercules Inc. v. Dynamic Export Corp.
United States District Court for the Southern District of New York
71 F.R.D. 101 (1976)
- Written by David Bloom, JD
Facts
Hercules Inc. (plaintiff), a Delaware corporation, agreed to have Dynamic Export Corp. (Dynamic) (defendant), a New York corporation, be its distributor of chemical products in Iran. Under this arrangement, the products were to be sold to Dynamic by Hercules International Trade Corporation (HITCO) (plaintiff), an affiliate of Hercules. HITCO was incorporated in the Bahamas and had its principal place of business in Delaware. Following a dispute between the parties, Hercules and HITCO sued Dynamic in federal court, claiming that Dynamic owed them money for the chemical products sold and delivered to Dynamic. In its defense, Dynamic alleged that it had been acting on behalf of H. Mottahedan & Co. (HMC) (defendant), an Iranian company. Dynamic joined HMC in a counterclaim against Hercules and HITCO, seeking damages for breach of contract. Hercules and HITCO motioned to dismiss the counterclaim on various grounds, including that the joinder of the alien HMC, as a counterclaimant adverse to HITCO, destroyed diversity jurisdiction.
Rule of Law
Issue
Holding and Reasoning (Cannella, J.)
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