Jontra Holdings Pty Ltd v. Gas Sensing Technology Corp.
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The Supreme Court reversed the final judgments against Plaintiffs, Australian investors, who sued Gas Sensing Technology Corporation (GSTC), a Wyoming-based oil and gas service company, for payment of loans Plaintiffs made to finance GSTC's operations in Australia, holding that the court erred in dismissing GSTC's counterclaims.
The district court dismissed GSTC's counterclaims on grounds that they unduly complicated the action and were untimely filed. The jury found that Plaintiffs had breached the implied covenant of good faith and fair dealing and, therefore, awarded no damages on Plaintiffs' breach of contract claims. The Supreme Court reversed, holding (1) the district court erred in dismissing GSTC's claims on the ground that they unduly complicated the case; and (2) the court erred in failing to give effect to a pleading GSTC filed in federal court and in dismissing GSTC's counterclaims as untimely.
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