St. Paul Fire and Marine Insurance Company, a Corporation v. Michigan National Bank of Detroit, a National Banking Corporation

BAILEY BROWN, Circuit Judge.

This is a diversity case to which Michigan law applies. The issue presented is whether a surety on a payment bond of a contractor, after paying a claim of a subcontractor, may maintain an action against a bank, which untimely dishonored for insufficient funds a check issued by the principal to the subcontractor, as assignee of the subcontractor’s claim against the bank for such untimely dishonor of the check. The district court, Honorable Charles W. Joiner, held, on motion for summary judgment, that the surety could not maintain such an action and granted summary…