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KECO INDUS. v. BORG-WARNER CORP.

December 17, 1972

Keco Industries, Inc., Plaintiff,
v.
Borg-Warner Corp. and York Division, Borg-Warner Corp., Defendants.


Herman, D. J.


The opinion of the court was delivered by: HERMAN

HERMAN, D. J..

 This matter is before the court on motion of the defendant, Borg-Warner Corporation, for partial judgment on the pleadings.

 Keco Industries, Inc. (hereinafter referred to as Keco), seeks recovery from Borg-Warner Corporation, York Division, (hereinafter referred to as York) on grounds that York maliciously interfered with Keco's contract relations with the Government; that York induced a breach of the contract between Keco and the Government; and that York violated the Clayton and Sherman Anti-trust Acts. York has counterclaimed seeking an indebtedness on account between the two parties arising from their contractural relations.

 York's motion asks the court to enter partial judgment on the pleadings in favor of York on the ground that "defendant is entitled to partial judgment as a matter of law on the undisputed facts appearing in the pleadings in that the pleadings do not set forth a claim against the Defendant upon which relief can be granted under the antitrust laws of the United States."

 The relevant allegations in plaintiff's complaint which incorporates all claims within the context of one court may be summarized as follows: *fn2"

 
1. Keco designs, engineers and fabricates air-conditioning and air-handling equipment for special purposes, particularly for use in the ground support and aerospace fields under contracts with the United States Government or with others who are performing work under contract for the Government. These contracts must be performed promptly and efficiently.
 
2. York Division of Borg-Warner designs, engineers and fabricates compressors and related equipment and enters into contracts for sale of said compressors throughout the United States.
 
3. The business of both Keco and York is of an interstate nature and character.
 
4. On June 29, 1969, Keco and the Government entered into a contract (DSA 700-68-C-9883) wherein Keco was to produce Two hundred seventy-seven (277) 18,000 BTU multi-package air conditioners. Previously, on June 28, 1968, Keco and the Government entered into contract (DAAG 11-68-C-1487) wherein Keco was to produce Four hundred fifty-two (452) 18,000 BTU multi-package air conditioners. The contracts presumably were for production of air conditioners for use in the aerospace industry.
 
5. The contracts on their face provided for the use of Thermo King Compressors Model 2S19M, within the air-conditioning unit. Thermo King compressor units are also specified in bidding on other air-conditioning units.
 
6. Although the contracts provided otherwise, the Government agreed *fn3" that they would substitute or employ compressors designated as Keco Part No. 64277 (hereinafter Keco Compressors) in fabrication of the air conditioners.
 
7. The Keco Compressor is a York Compressor, sold by York to Keco and modified by Keco so that it is physically ...

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