Pacific Indemnity Company v. Grand Avenue State Bank of Dallas, Texas, and C. M. Turlington, Trustee

DAWKINS, District Judge.

• This is an appeal by the surety on a construction contract from an adverse judgment in its suit to recover proceeds of a check issued to the contractor in partial payment for work done on the contract. Named as defendants in the suit were the bank in which the contractor deposited the cheek and the contractor’s trustee in bankruptcy. The complaint set forth appellant’s claim to the proceeds of the check on the ground that at the time it was received by the contractor, the latter was in default on the contract and the proceeds of the check'were held in trust for the…