Ramada Development Company, a Corporation v. United States Fidelity & Guaranty Company, a Corporation

KEITH, Circuit Judge.

Plaintiff-Appellant Ramada Development Company (hereinafter “Radco”), appeals from the judgment of the district court discharging the defendant Surety, United States Fidelity & Guaranty Company (USF&G), pro tanto, for payments made by Radco to its electrical subcontractor (Mays Electric, Inc.) for work that Radco knew had not been completed by the subcontractor. Radco argues on appeal that the discharge was improper because: 1) the payments were actually used toward completion of the contract, which would ultimately benefit the Surety; 2) since there was no actual breach…