T & R Dragline Service, Inc. v. Cna Insurance Company

ALVIN B. RUBIN, Circuit Judge:

In this Louisiana diversity case, the lessor of equipment to a subcontractor on a public works project sued the subcontractor’s surety to recover monies allegedly due on the lease. The district court held that the suit was barred by prescription. The question presented is whether the labor-and-material-payment bond posted by the subcontractor may contain a shorter contractual prescriptive period than the statutory period established by the Louisiana Public Works Act. The Act pertains in terms to contracts between a public agency and a contractor. We hold that it…