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ARVANIS v. NOSLO ENGINEERING CONSULTANTS, INC.,

Nos. 83-1670, 83-1766.

739 F.2d 1287 (1984)

John V. ARVANIS, d/b/a, Industrial Contractors, Plaintiff-Appellant, v. NOSLO ENGINEERING CONSULTANTS, INC., Noslo Engineering Corporation, and The United States of America, Defendants-Appellees. BAER ELECTRIC CO., INC., an Illinois Corporation, Plaintiff-Appellant, v. NOSLO ENGINEERING CONSULTANTS, INC., Noslo Engineering Corporation & The United States of America, Defendants-Appellees.

United States Court of Appeals, Seventh Circuit.

Decided July 31, 1984.

Rehearing and Rehearing Denied August 27, 1984.

Attorney(s) appearing for the Case

Samuel S. McHard, Katz, McAndrews, Durkee, Balch & Lefstein, Rock Island, Ill., Richard W. McCarthy, Kolckau, McCarthy, Ellison, Rinden & Hartsock, Rock Island, Ill., for plaintiffs-appellants.

Gerald D. Fines, U.S. Atty., Springfield, Ill., L. Lee Smith, Asst. U.S. Atty., Peoria, Ill., Major Thomas G. Bowe, Headquarters Dept. of Army, DAJA-Ltd., Washington, D.C., for defendants-appellees.

Before BAUER, CUDAHY and ESCHBACH, Circuit Judges.

Rehearing and Rehearing En Banc Denied August 27, 1984.

PER CURIAM.

The ultimate question we are asked to decide is who is left holding the bag when a prime contractor on a federal construction project fails to obtain a Miller Act payment bond and then defaults without paying his subcontractors. We conclude that the answer is the hapless subcontractor, not the United States.

I.

On a private construction project, mechanic's and materialmen...

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