Asea, Inc. v. Southern Pac. Transp. Co.

Facts

Plaintiff, a New York corporation, Asea, Inc. sold electrical transformer to the Los Angeles Department of Water & Power. The transformer was shipped on a ship from the Swedish manufacturer Asea A/B to Los Angeles. After shipment, Southern Pacific Transportation Co. and Harbor Belt Line, Defendants, took custody of the transformer and sent it by railroad to North Hollywood, California. Throughout the shipments, the transformer was damaged. Plaintiff brought suit against the railroads in federal court pursuant to diversity jurisdiction for negligence, breach of warranty, and California statute violations. In this case, the discovery process lasted over a year. Plaintiff served admission request on the railroads, referring to when and how the transformer was damaged. The railroad responded to eighteen requests, indicating that after reasonable review, the railroads could not admit or deny the claims by stating “(n)ot applicable.” Subsequently, Plaintiff concluded that the railroads knew how the transformer was damages. Thus, the railroads should have admitted or denied the statements. Plaintiff motioned to have the court deem the requests admitted. The railroads gave unpersuasive responses at the hearing, and the district court granted Plaintiff’s motion.