AMERICAN SURETY COMPANY OF NEW YORK v. UNITED STATES

No. 17107.

317 F.2d 652 (1963)

AMERICAN SURETY COMPANY OF NEW YORK, Appellant, v. UNITED STATES OF AMERICA, Appellee.

United States Court of Appeals Eighth Circuit.

May 28, 1963.


Attorney(s) appearing for the Case

Clifford B. Kimberly, Kansas City, Mo., made argument for appellant.

John C. Eldridge, Atty., Civil Division, Dept. of Justice, Washington, D. C., made argument for appellee. Joseph D. Guilfoyle, Acting Asst. Atty. Gen., Civil Division, Dept. of Justice, Washington, D. C., F. Russell Millin, U. S. Atty., Kansas City, Mo., and Sherman L. Cohn, Atty., Dept. of Justice, Washington, D. C., were with him on the brief.

Before VOGEL, BLACKMUN and RIDGE, Circuit Judges.


BLACKMUN, Circuit Judge.

This suit was instituted by the United States against Hawthorn Manufacturing Company and its surety for breach of a defense contract for the supply of bomb rack releases to the Air Force. The damage claimed, approximating $29,000, was the increased cost incurred by the government in procuring the releases from another source. Hawthorn's principal officer, Fred N. Pierson, who had indemnified the surety...

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