John N. Price & Sons v. Maryland Casualty Co.

In this case the defendant was surety on a statutory general contractor’s performance bond for the construction of a public school in Paterson, New Jersey. The plaintiff was a painting subcontractor on the work. The contract, made part of the bond, contained the usual withholding provisions and subrogated the surety to the rights of the owner, the Board of Education, as to any payment so withheld. When the school was completed and accepted, the Board retained $33,000 of the monies due the general contractor. At that time the contractor owed the plaintiff $3,500. The Board notified the…