United States of America F/u/b of Dillon Construction Inc., a Corporation v. Continental Insurance Company, a Corporation

GODBOLD, Chief Judge:

Plaintiff Dillon Construction Inc. sued defendant Continental under the Miller Act, 40 U.S.C. § 270a et seq., seeking payment for work it had done on a U.S. Army ammunition storage area in the Canal Zone. The district court entered judgment in favor of Dillon. We reverse.

I. Background

Craddock Construction International contracted with the U.S. Army to do construction at the area in question. Craddock, as required by the Miller Act, obtained a surety bond from defendant. Craddock subcontracted part of the job to Dillon. Dillon completed its work on the contract some time…