A.C. Davenport & Son Co. v. United States

BAUER, Circuit Judge.

The issue in this appeal is whether the General Services Administration (GSA), having mistakenly made duplicate payments to both the contractor and subcontractor under a government contract, may recover the overpayments from the subcontractor. The district court held that it may not. We affirm.

The GSA originally contracted with Al-mark, Inc. for bulletin boards. Almark then subcontracted with Davenport to manufacture these bulletin boards. Because of Almark’s financial instability Davenport agreed to accept the subcontract only if Almark guaranteed payment. Accordingly,…