United States v. West Texas State Bank

GEWIN, Circuit Judge:

The primary question raised on this appeal is whether a state statute of limi tations can bar a suit brought by the United States as a third party beneficiary to enforce a contract wherein one party agreed to pay all the federal income taxes for which another might become liable.

During the first half of 1955, appellee, West Texas State Bank (Bank), made a number of loans to Bellaire Pipeline Contractors (Bellaire), a Texas corporation. Later in that year the Bank brought suit against Bellaire to recover, among other things, the unpaid balance of said loans. One…