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NATIONAL SURETY CORPORATION v. UNITED STATES

Nos. 419-52, 149-53.

133 F.Supp. 381 (1955)

NATIONAL SURETY CORPORATION v. The UNITED STATES, The First National Bank in Houston, Third Party Defendant. FIDELITY AND DEPOSIT COMPANY OF MARYLAND v. The UNITED STATES. The First National Bank in Houston, Intervenor.

United States Court of Claims.

July 12, 1955.

Attorney(s) appearing for the Case

Emanuel Harris, New York City, for National Surety Corp. and Fidelity & Deposit Co. of Maryland, and M. U. S. Kjorlaug, Houston, Tex., for First Nat. Bank in Houston. Max E. Greenberg, New York City, and Boyles & Billingsley, Houston, Tex., on the briefs.

Walter Kiechel, Jr., Washington, D. C., Warren E. Burger, Asst. Atty. Gen., for defendant.

Before JONES, Chief Judge, and LITTLETON, WHITAKER, MADDEN and LARAMORE, Judges.

WHITAKER, Judge.

These cases involve contests between surety companies on a defaulting contractor's payment bonds and a bank which sues under an assignment of the moneys due on the contracts given by the contractor to secure loans by the bank.

In both cases, on default of the contractor, the sureties paid laborers and materialmen to whom the contractor was indebted for labor and material furnished in the performance...

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