American Surety Co. of New York v. Westinghouse Electric Mfg. Co.

The amended claim of American Surety Company asserted a prior lien on the fund paid to the contractor’s trustee in bankruptcy by the United States. The objections of the materialmen asserted a prior lien in themselves and a right to be paid to the entire exclusion of the surety company; the fund being insufficient to pay all. The referee sustained the objections and ordered the materialmen to be paid first. This is the judgment which is to be affirmed. The surety company is at least a general creditor. The materialmen assert no priority under any provision of the Bankruptcy Act (11 USCA).…