First National Bank v. United States Fidelity & Guaranty Co.

The answer of the respondent asserts that it was understood between the bank, the respondent and the contractors, at the time the letters were given, that the bank would be protected only on such moneys as it collected on estimates for work actually done each month, and that the letters were not intended to give the bank, which was so understood by it, the right to collect the retained percentages or retained estimates. It was further con tended in the answer, by way of defense to the bank’s claim, as follows:

First: That no retained percentages ever became due the contractors, for the reason…