American Surety Co. of New York v. Cove Irr. Dist.

HUNT, Circuit Judge.

The surety company asks reversal of a judgment for $4,-877.99, rendered against it in an action brought by the irrigation district upon a surety bond.

On September 28, 1922, the Cove irrigation district, organized under the laws of Montana, entered into a contract with Schlueter Bros., contractors, for the construction of certain irrigation works. Contractors agreed to do the work specified and to pay the district $60,000 in cash for the purpose of enabling the irrigation district to meet its outstanding obligations, and to accept in payment therefor bonds of the district…