Western Energy, Inc. v. Georgia-Pacific Corp.

The relevant facts of this litigation arose out of an arm’s-length business transaction in Louisiana. After negotiations in the fall of 1977 and early 1978, the parties entered into an agreement for plaintiff to supply phenolic tar, a waste oil fuel, to defendant for its plant in Port Hudson, Louisiana. The case was tried on the basis that the substantive law of Louisiana applied.

Plaintiff alleged a cause of action for breach of contract and a cause of action for misrepresentation. The second cause of action was plead in two counts, i.e., negligent misrepresentation and fraudulent…