Westinghouse lawsuit filed in Delaware court
CRANBERRY TWP — A breach-of-contract lawsuit against Westinghouse Electric Co. was withdrawn from federal court and filed in a Delaware court.
Curtiss-Wright Electro-Mechanical Corp. on Wednesday voluntarily withdrew its complaint against the Cranberry-based nuclear power company from the U.S. District Court for the Western District of Pennsylvania.
Curtiss-Wright sued Westinghouse because it alleged the Cranberry company failed to purchase eight of 32 reactor coolant pumps as agreed upon in an April 2008 contract. That reneging, the company alleged, cost Curtiss-Wright millions of dollars, with the sale price for the pumps of $118.4 million along with additional damages worth $50.9 million it invested to produce 32 pumps and a volume discount.
The company withdrew its complaint from federal court because it learned Westinghouse is incorporated in the state of Delaware. Because Curtiss-Wright is also incorporated in Delaware, and the lawsuit is based on breach-of-contract instead of a federal law, the district court does not have jurisdiction over the case.
Because the parties agreed in their contract to mandatory arbitration, they submitted to mediation but, on June 24, reported to the court they had failed to reach a resolution to the case. Shortly afterward, on June 29, Westinghouse moved to dismiss Curtiss-Wright's lawsuit because of the lack of diversity jurisdiction, a motion which was struck the next day because of a procedural error.
Nevertheless, Curtiss-Wright voluntarily withdrew its complaint and submitted its lawsuit to Delaware. A complaint for breach of contract was docketed on July 3 in Delaware's Complex Commercial Litigation Division.
