Reference no: EM13860172

FC Schaffer & Associates, Inc. is an engineering firm based in Louisiana that did business with ODA Trading Agency, an Ethiopian entity that represents businesses wanting to do business in Ethiopia. Endrias, the founder and owner of ODA, employs Mesfin Gebreyes and an independent contractor, Kifle Gebre. Endrias left Ethiopia to live in the United States for five years. Shortly after Endrias's departure, Kifle learned that the Ethiopian Sugar Corporation was going to build a sugar mill and ethanol plant in Ethiopia. Kifle then contacted Schaffer about bidding for the project. Schaffer was interested and entered into a contract with ODA that provided that Schaffer would pay a commission to ODA if it was the successful bidder on the project. Schaffer was the low bidder and was chosen to build the mill and plant.

Two months after Schaffer was awarded the contract, Endrias returned to Ethiopia and contacted Schaffer to introduce himself as the owner of ODA. Schaffer had never worked with or heard of Endrias and decided to enter into a new agreement with Mesfin and Kifle. This agreement purported to supersede the prior agreement between Schaffer and ODA. Schaffer refused to pay any commission to ODA under the first agreement, and Endrias sued Schaffer for breach of contract in the U.S. District Court for the Middle District of Louisiana. Can Endrias sue Schaffer in federal court? What law will apply to the breach-of- contract claim-federal law, the state law of Louisiana, or the law of Ethiopia?