Cosmopolitan Equities Corp.

Plaintiff, assignee of a contractor with the Coast Guard, seeks to recover $22,907.65 which was paid by the Coast Guard to the Internal Eevenue Service in satisfaction of the assignor’s unpaid tax liability, claiming that defendant, having knowledge of the assignor’s tax indebtedness to it prior to the date of the assignment which it approved, was estopped to deduct the taxes of the assignor from the contract proceeds; that the Coast Guard as a part of the Department of Defense, could not set off against the contract proceeds the assignor-contractor’s debts to the Government; and, finally,…