Standard Accident Insurance v. United States

Plaintiff was the surety on the performance bond of the Joseph A. Holpuch Company, which had a contract for the erection of a hospital building and nurses’ quarters at the Veterans’ Administration Home at Leavenworth, Kansas.

On April 1, 1932, the Holpuch Company’s contract was terminated, due to, according to the findings of the contracting officer, its failure to proceed with such diligence as would insure completion of the contract by the agreed date. Thereafter, plaintiff-and the Veterans’ Administration entered into an arrangement, under which plaintiff agreed to take over performance of…