On July 23, 2015, Plaintiff Alfred Conhagen, Inc. sued defendants Ruhrpumpen, Inc. and Waldemar S. Nelson and Co. in Orleans Parish Civil District Court, alleging violations of Louisiana law.
In April 2014, Healtheon, Inc. began developing a design team to bid on a NASA project, which involved installing a pump at an industrial water plant. Healtheon hired defendant Nelson, to provide design services. Healtheon wanted plaintiff Conhagen to supply and install the pump.
Nelson proposed using a pump manufactured by defendant Ruhrpumpen for the NASA project. Ruhrpumpen quoted a price for the pump for the bid, and, after the bid was accepted, then revised its quote, increasing the price more than $1 million higher than its original quote.
Instead of paying Ruhrpumpen's higher price for the pump it needed for the NASA project, Conhagen purchased a replacement pump from another supplier. This replacement pump still cost more than the price Ruhrpumpen originally quoted, causing Conhagen to suffer substantial monetary damages.
Ruhrpumpen removed the suit to federal court, arguing that that Nelson is an improperly joined defendant because "Conhagen's allegations totally fail to state a claim against Nelson," and moved to dismiss Nelson and remand the case.
Reeves, representing Conhagen, argued that Nelson was partially or completely at fault for the erroneous quote. The Court agreed, holding that "Conhagen has plausibly alleged state-law causes of action against Nelson. Therefore, Nelson is a properly joined defendant, and this Court lacks jurisdiction to adjudicate Conhagen's state-law claims." The motion to remand and motion to dismiss were denied.
Full decision and opinion:
http://www.leagle.com/decision/In%20FDCO%2020151202C39/ALFRED%20CONHAGEN,%20INC.%20v.%20RUHRPUMPEN,%20INC.