First National Insurance Co. of America v. Commonwealth

First National Insurance Company of America (surety) commenced this action against the Commonwealth alleging an abuse of discretion by the Commonwealth in disregard of the surety’s interest in certain contract funds. The surety’s action was dismissed under Mass. R Civ. P. 12 (b) (6), 365 Mass. 754 (1974), and it appealed. We transferred the case to this court on our own motion. We hold that the complaint sufficiently *249states a claim against the Commonwealth under G. L. c. 258, § 1, and we reverse the judgment dismissing the action.

The complaint alleges that on April 30,1973, the Commonwealth…