Norwest Bank Arizona, N.A v. United States

OPINION

HODGES, Judge.

Plaintiff Arizona Millwork was a subcontractor on a Navy project to provide modular buildings to the prime contractor. Plaintiff ceased delivering the modules until the prime would agree to assign its payments on the contract to Arizona Millwork’s bank. The contractor assigned the payments and the modules were delivered, but the Navy paid the contractor instead. Plaintiffs argue that the Navy violated a valid and enforceable assignment; defendant contends that the bank did not have a valid assignment.

We hold that the Government was obligated to pay the bank because the…