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VAN-TEX, INC. v. PIERCE

No. 82-1002.

703 F.2d 891 (1983)

VAN-TEX, INC., et al., Plaintiffs Industrial Indemnity, Inc., Plaintiff-Appellee, v. Samuel R. PIERCE, Jr., Secretary, Department of Housing and Urban Development, Defendant-Appellant.

United States Court of Appeals, Fifth Circuit.

April 25, 1983.

Attorney(s) appearing for the Case

Lenore C. Garon, Atty., Dept. of Justice, Civ. Div., Commercial Litigation, Susan M. Chalker, Anthony J. Steinmeyer, Attys., Appellate Staff, Civ. Div., Dept. of Justice, Washington, D.C., for defendant-appellant.

Baker & Botts, Ralph S. Carrigan, Houston, Tex., for Indus. Indem. Co.

Before BROWN, GOLDBERG, and HIGGINBOTHAM, Circuit Judges.

PATRICK E. HIGGINBOTHAM, Circuit Judge:

We decide today three cases dealing with the rights to construction holdbacks on projects financed by HUD-insured mortgages. In this case, Industrial Indemnity, the surety of a contractor on a § 221(d)(4) (12 U.S.C. § 1715l (d)(4)) project, brought suit against HUD to recover holdbacks after the mortgagee had foreclosed and assigned the project to HUD. On cross-motions for summary judgment relying upon a stipulation...

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