United States v. L. R. Foy Construction Co.

BREITENSTEIN, Circuit Judge.

The United States appeals from a judgment entered in an interpleader action brought by L. R. Foy Construction Company (Foy) and claims that the trial court erred in subordinating its claims for taxes due from Stumm (taxpayer) to the claims of Valley State Bank and Tri-State Insurance Company (herein referred to as Bank and Surety respectively).

Foy held the principal contract for the construction of a high school building at Garden City, Kansas, and subcontracted certain masonry work to the taxpayer. The Bank financed the taxpayer’s operations and on September…