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U.S. v. J.D. GRAINGER CO., INC.

No. 90-35429.

945 F.2d 259 (1991)

UNITED STATES of America, for the Use and Benefit of CONSOLIDATED ELECTRICAL DISTRIBUTING, INC., Plaintiff, and Consolidated Electrical Distributing, Inc., Plaintiff-Counter-Defendant-Appellee, v. J.D. GRAINGER COMPANY, INC., et al., Defendant-Cross-Defendant, and AMWEST SURETY CO., Defendant-Third-Party-Plaintiff-Appellee, v. INTERNAL REVENUE SERVICE, Third-Party-Defendant-Appellant.

United States Court of Appeals, Ninth Circuit.

Decided September 18, 1991.

Attorney(s) appearing for the Case

Kevin M. Brown and Gary R. Allen, U.S. Dept. of Justice, Washington, D.C., for defendant-appellant.

Nancy K. Bourgois, Russo & Graham, Seattle, Wash., for plaintiff-appellee.

Before WALLACE, Chief Judge, and O'SCANNLAIN and LEAVY, Circuit Judges.

O'SCANNLAIN, Circuit Judge:

We are asked to choose between the government and an unpaid subcontractor to establish who has priority to the collateral posted by the government's prime contractor who happens to be a delinquent taxpayer.

I

In 1986, prime contractor J.D. Grainger Company entered into a contract with the United States for the construction of a Magnetic Silencing Facility at the Bangor Naval Shipyard in Kitsap County, Washington. In accordance...

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