United States v. Seaboard Surety Co.
District Court, D. Montana · 1938-06-22 · cited 33×
The case involved claims by material suppliers and subcontractors against Seaboard Surety Company on a payment bond issued for a federal contract to construct extensions and remodel the U.S. Post Office and Courthouse in Butte, Montana. After the prime contractor defaulted, the surety completed the project, and unpaid suppliers to subcontractors Watsabaugh & Company and Interstate Heating and Plumbing Company sued on the bond under the federal statute (40 U.S.C. § 270) requiring such bonds for public works. The court allowed recovery by certain interveners (Grace-Mayer Company, Fell & Pinkerton, and Morley & Thomas Co.) for documented unpaid material amounts plus interest and costs, while denying attorney fees and costs to Interstate Heating and Plumbing Company because no statute authorized them and its claims had been paid in full. It also ordered the surety to recover a small sum plus costs from Watsabaugh & Company based on overpayment evidence. The decisions rested on the bond statute's requirements, state rules limiting costs to prevailing plaintiffs recovering over $50, and the specific facts of payments and unpaid bills shown in the record.
