American Surety Co. v. Codell

FORD, District Judge.

The defendants, being the lowest bidders, were awarded a contract by the Louisville & Nashville Railroad Company for construction of a line of railroad for the sum of $1,355,237.30. At the instance of the defendants, the plaintiffs executed a surety bond in the penal sum of $500,000 for the faithful performance of the contract.

The controversy in this litigation is whether the plaintiffs, as compensation for their suretyship, are entitled to recover only $5,000, the amount offered them by defendants, being 1% of the penalty fixed in the bond or the sum of $13,552.37, the…