Balboa Insurance v. United States

OPINION

SPECTOR, Senior Judge.

Defendant has moved to dismiss plaintiff’s complaint under Rule 12(b)(4) on the grounds that it fails to state a cause of action upon which relief can be granted. The complaint alleges breach of plaintiff-surety’s “takeover” agreement with the United States which was entered into following default of a Government construction contractor bonded by plaintiff-surety.

Facts as Pleaded 1

On December 13, 1976, the Federal Aviation Administration (FAA) entered into a contract with the Small Business Administration as prime contractor, and Southwest Construction Company as…