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ST. PAUL FIRE & MARINE INS. CO. v. MICH. NAT. BANK

No. 79-1533.

660 F.2d 196 (1981)

ST. PAUL FIRE AND MARINE INSURANCE COMPANY, a corporation, Plaintiff-Appellant, v. MICHIGAN NATIONAL BANK OF DETROIT, a national banking corporation, Defendant-Appellee.

United States Court of Appeals, Sixth Circuit.

Decided September 23, 1981.

Rehearing and Rehearing Denied November 10, 1981.

Attorney(s) appearing for the Case

Ronald A. Deneweth, Jenkins, Nystrom & Sterlacci, Janis B. DeGennaro, Southfield, Mich., for plaintiff-appellant.

Victor T. Adamo, Nederlander, Dodge & McCauley, Detroit, Mich., for defendant-appellee.

Before MERRITT, BROWN and KENNEDY, Circuit Judges.

Rehearing and Rehearing En Banc Denied November 10, 1981.

BAILEY BROWN, Circuit Judge.

This is a diversity case to which Michigan law applies. The issue presented is whether a surety on a payment bond of a contractor, after paying a claim of a subcontractor, may maintain an action against a bank, which untimely dishonored for insufficient funds a check issued by the principal to the subcontractor, as assignee of the subcontractor's claim against the bank for...

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