American Surety Company of New York v. United States

BLACKMUN, Circuit Judge.

This suit was instituted by the United States against Hawthorn Manufacturing Company and its surety for breach of a defense contract for the supply of bomb rack releases to the Air Force. The damage claimed, approximating $29,000, was the increased cost incurred by the government in procuring the releases from another source. Hawthorn’s principal officer, Fred N. Pierson, who had indemnified the surety company, was drawn into the litigation by the surety by appropriate third party procedure. Hawthorn, which in the meantime had forfeited its corporate charter, could not…