American Oil Co. v. General Contracting Corp.

CALLISTER, Justice.

Plaintiff, a supplier, brought suit against General Contracting Corp., subcontractor, United States Steel Corporation, prime contractor, and Federal Insurance Co., surety, for the value of materials ordered by and delivered to the subcontractor. A default judgment was entered against the latter, but the lower court granted motions by the other two defendants for summary judgments and plaintiff appeals.

U. S. Steel, having first secured the statutory required bond1 from Federal, entered into a contract with the state of Utah for the construction of a highway bridge. The…