United States Fidelity and Guaranty Company v. Hendry Corporation

(dissenting) :

I dissent from the holding of the majority that a state court determination of liability of the principal is to be given no collateral estoppel effect in a Miller Act suit against the surety in federal court.

Federal jurisdiction over Miller Act claims is exclusive. There is no equivocation in the words of the statute as to where venue properly lies. But statutory pronouncements of jurisdiction and venue do not answer the question presented here.

The usual rule of suretyship law is as stated by the majority, that if the surety has full knowledge and opportunity to defend a suit…