Covenant Mutual Insurance v. Able Concrete Pump

OPINION AND ORDER

ORRICK, District Judge.

The sole issue left to be decided in this action is whether a surety for both payment and performance bonds on a government contract who completes performance for the defaulting contractor and also deposits the full amount of the payment bond with the court is entitled to sums retained by the government from the original contractor’s progress payments even though the payment bond does not fully compensate that contractor’s subcontractors. For the reasons set forth herein, plaintiff surety in this case is a subrogee of the government and has an equitable…