Oregon Plywood Sales Corporation v. Sutherlin Plywood Corporation and Nordic Plywood, Inc.

STEPHENS, Chief Judge.

This is a diversity case dealing with an output contract. Appellant, Oregon Plywood Sales Corporation, purchases plywood from plywood manufacturers, including its parent corporation, Oregon Plywood Corporation. Appellant’s method of operation is to secure orders from its customers and then place its own orders with a manufacturer who ships the goods to the ultimate purchaser.

Appellee, Sutherlin Plywood Corporation, had completed construction of a “plywood lay-up mill” at Sutherlin, Oregon, in October, 1953, but lacked working capital when the mill was completed. Robert…