American Home Assurance Co. v. Major Tool & Machine, Inc.

HENRY WOODS, District Judge.

1. BACKGROUND

This is a Minnesota diversity case in which the appellant insurers of Turbodyne, Inc. seek subrogation against Major Tool and Machine, Inc. and Birdsboro Corporation, appellees. Turbodyne was the assembler of a turbine which it contracted to supply to the Missouri Basin Municipal Power Agency. The inner housing for the turbine was supplied to Turbodyne by Major Tool and the turbine case by Birdsboro under subcontracts. As a result of a dimensional deviation by appellees from the contract drawings supplied by Turbodyne, a wear pin became disengaged,…