In re the Liquidation of National Surety Co.

The order should be reversed and the claims allowed upon the ground that the sureties on the general bond given to the Inter-borough Rapid Transit Company became subrogated to all the rights of the Inter-borough upon payment of its claim against D. C. Serber, Inc., and were entitled to enforce those rights against the National Surety Company under its bonds subsequently given in the mechanic’s" lien action. (Katz v. Mendelsohn, 260 N. Y. 434.) It does not answer this contention to say that the claim of the Interborough was paid by the appellants, so that the mechanic’s lien action could no…