Biomedical Instrument and Equipment Corp. v. Cordis Corporation

BREYER, Circuit Judge.

In late 1983 Cordis Corporation, a manufacturer of cardiac pacemakers and other medical supplies, stopped doing business with its distributor in Puerto Rico, a company called Biomedical Instrument and Equipment Corp. After a six-month hiatus, Biomedical sued Cordis, in a commonwealth court, claiming that Cordis violated the Puerto Rico Dealers’ Contracts Act, 10 L.P.R.A. § 278 et seq. — a statute that (as relevant here) forbids a manufacturer from ending its business relation with a distributor unless there is “just cause” for doing so. 10 L.P.R.A. § 278a. Cordis, a…