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SEGOVIA DEV., ETC. v. CONSTRUCTORA MAZA, INC.

No. 79-1663.

628 F.2d 724 (1980)

SEGOVIA DEVELOPMENT CORPORATION and Federal Insurance Co., Plaintiffs, Appellees, v. CONSTRUCTORA MAZA, INC., Jorge M. Guillermety, Banco de Ponce, Defendants, Appellants.

United States Court of Appeals, First Circuit.

Decided August 25, 1980.

Attorney(s) appearing for the Case

Ismael H. Herrero, Jr., San Juan, P. R., Jose Raul Bigas, Hato Rey, P. R., Correa Calzada, Collazo, Salazar, Herrero & Lazaro Paoli, San Juan, P. R., Rodriguez-Ramon, Pena & Cancio, Hato Rey, P. R., on brief, for defendants, appellants.

Francisco Castro-Amy, San Juan, P. R., on brief, for plaintiffs, appellees, Federal Ins. Co.

Before CAMPBELL and BOWNES, Circuit Judges, and DAVIS, Judge, U. S. Court of Claims.

DAVIS, Judge.

The question is whether the Puerto Rico law governing a surety's right vis-a-vis the owner and contractor accords with that "widely applied in this country." Pearlman v. Reliance Ins. Co., 371 U.S. 132, 137, 83 S.Ct. 232, 235, 9 L.Ed.2d 190 (1962). Holding that it did, the District Court ruled that a surety paying the laborers and materialmen of its bankrupt contractor and performing its contractor's other obligations...

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