Energy Coal S. P. A. v. CITGO Petroleum Corp.

Energy Coal, an Italian company, filed suit in Louisiana state court after Petroleo, a wholly-owned subsidiary of a company based in Venezuela, failed to pay for services. Instead of naming Petroleo as the defendant, Energy Coal sued a nonparty to the contracts: CITGO, a Delaware corporation with its headquarters in Houston. CITGO removed the suit to federal court on the basis of diversity jurisdiction. The district court granted CITGO's motion to dismiss. The court agreed with the district court that Delaware law governs whether CITGO can be held liable for its affiliate’s breach. Because Energy Coal acknowledges that it cannot disregard the corporate form under Delaware law, the court affirmed the judgment. View "Energy Coal S. P. A. v. CITGO Petroleum Corp." on Justia Law