Miami Conservancy Dist. v. New Amsterdam Casualty Co.

SIMONS, Circuit Judge.

The Casualty Company was surety on a contractor’s bond given to the Conservancy District to secure faithful performance of a public improvement contract. It was held liable by decision of the Butler County Court of Appeals (New Amsterdam Casualty Co. v. A. Wirtz Transfer Co., 34 N.E.2d 258, for the claims of laborers, materialmen and subcontractors remaining unpaid after the District had paid the contractor the full amount of the contract price. It sought to recoup its loss by suit against the District on the ground that the *605retained percentages were for its benefit and…