United States Fidelity & Guaranty Co. v. Housing Authority

WISDOM, Circuit Judge:

This appeal concerns a dispute over the retained contract funds of two companion public construction projects. The parties are the surety (plaintiff-appellant) on the prime contractor’s statutory performance and payment bonds on both projects, and the contractor’s insurance agency as a conventional assignee of a portion of the contractor’s rights to the retained funds on only one of the projects. We hold for the surety, and reverse the district court.

I

The Housing Authority for the Town of Berwick, Louisiana, (Authority) initiated two construction projects for low-rent…