Modern Industrial Bank v. United States

Plaintiff, as assignee of John Post & Son Corporation, brought this suit to recover $18,090.99 for work done by its assignor under a construction contract with defendant prior to the date on which the Government terminated the contractor’s right to further proceed with the work under art. 9 of the contract.

Plaintiff’s first contention is that the action of the Government in terminating the contractor’s right to proceed on October 14,1941, was not justified and, therefore, constitutes a breach of the contract. We cannot agree. The contractor was in default on September 1, 1941 (all dates…