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POWER ENG. & MFG. v. KRUG INTERN.

No. 91-1737.

501 N.W.2d 490 (1993)

POWER ENGINEERING & MANUFACTURING, LTD., An Iowa Corporation, Appellee, v. KRUG INTERNATIONAL, Appellant.

Supreme Court of Iowa.

June 16, 1993.

Attorney(s) appearing for the Case

Eric W. Johnson and Hugh M. Field of Beecher, Rathert, Roberts, Field, Fister, Walker & Morris, Waterloo, for appellant.

Larry J. Cohrt of Swisher & Cohrt, Waterloo, and Charles T. Mattson, Waterloo, for appellee.

Considered by McGIVERIN, C.J., and HARRIS, LARSON, SCHULTZ, and LAVORATO, JJ.

HARRIS, Justice.

An Iowa manufacturer contracted to design and supply special equipment for a corporation doing business in Ohio. Although the Iowa manufacturer was unaware of it, the equipment was to be sold to an entity in Iraq. As a result of hostilities between that nation and ours, an embargo was declared and enforced, prohibiting trade with the entity in Iraq. The question in this suit is which of the two corporations must bear the loss. The trial court determined...

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