Manufacturers Casualty Ins. Co. v. United States

WHITAKER, Judge.

Plaintiff was the surety on the payment and performance bond of the Merando Company, which had a contract for the erection of an addition to the Neuro-psy-chiatric Ward of Walter Reed General Hospital in Washington, D. C. It paid subcontractors and materialmen a total of $34,461.17 on account of the contractor’s default. It has been reimbursed to the extent of $14,047.30, resulting .in a net loss to it of $20,413.87. It brings this suit alleging that defendant has unlawfully deducted from the amount due the contractor the sum of $3,120 in liquidated damages.

It first says that…