Standard Accident Ins. Co. v. United States

LITTLETON, Judge.

Plaintiff company, surety on a Government contractor’s performance bond, completed the contract after its principal defaulted. Under the terms of the contract the Government had retained certain percentages from the payments made to the contractor during the progress of the work before its default. The question here is whether the completing surety’s right to the retained percentages is superior to the right of the Government to apply!them, in partial satisfaction of taxes owed by the contractor. It is settled that a surety satisfying its principal’s obligation on a bond…