United States v. Shaw

In 1918 Sydney C. McLouth contracted to construct nine tugs for the United States Shipping Board Emergency Fleet Corporation. On May 24, 1920, the contract was cancelled and the parties entered into a settlement agreement providing that McLouth was to keep as bailee certain materials furnished him for use in building the tugs and that the Fleet Corporation was to assume certain of McLouth’s subcontracts and commitments. Among the commitments assumed was a contract of Mc- Louth’s to purchase lumber from the Ingram-Day Lumber Company. The Lumber Company obtained a judgment against McLouth for…