Hartford Accident & Indemnity Co. v. First National Bank & Trust Co. of Paterson, New Jersey

The plaintiff was surety on a payment bond required under a contract for a public improvement (see State Finance Law, § 137), and paid the claims of lienors for labor and material pursuant to the obligations of its bond. It brings this action to recover the unexpended balance of the contract in the hands of the State after completion of the work following the contractor’s default. The complaint alleges two causes of action (1) to foreclose the mechanics’ liens assigned to the plaintiff by the lienors, and (2) to recover the fund upon the ground that the plaintiff as surety upon the payment…