Harriscom Svenska, Ab v. Harris Corp.

3 F.3d 576 (2nd Cir. 1993)

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Nature of the Case

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Facts

Harriscom (P) contracted with Harris (D) for the sale of radios and spare parts to Iran. A force majeure clause was in the contract, and eventually, the U.S. government prohibited all sales to Iran of goods it characterized as military equipment. U.S. Customs detained shipments of these parts destined for Iran. D compromised with the government over the shipment and agreed to voluntarily withdraw from all further sales to the Iranian marketplace, and in exchange, the government ruled that a certain model radio was not subject to stringent export controls of Munitions List products. P could not fill its orders and lost $270,000 in unconditional bond guarantees for the failure to fill five remaining orders. P also lost profits on the unfulfilled orders. P sued D for the failure to deliver. P also sued D over the manufacture of another model radio that was under previous agreement agreed not to be manufactured. P first sued under negligence, fraud, and breach of contract. Summary judgments were given D on all those claims. D prevailed on a motion for summary judgment and a second complaint on res judicata grounds, and P appealed.