U. S. Industries, Inc., a Corporation v. Semco Manufacturing, Inc., a Corporation

ROSS, Circuit Judge.

In this contract cause of action, Federal Sheet Metal (hereinafter FSM), a division of U. S. Industries, Inc., sued to recover losses incurred when its supplier, Semco Manufacturing, Inc. (hereinafter Semco), allegedly breached a contract to furnish medium and high pressure ductwork to FSM. The parties are of diverse citizenship 1 and the amount in controversy exceeds $10,000.

In July 1972 FSM was successful in securing a subcontract for the mechanical work on construction of the new Walter Reed Army Hospital; FSM was required to furnish and install all components of the…