United States v. Hibernia National Bank, Defendant-Third-Party Appellant-Cross v. Joseph M. Rault, Jr., Third-Party Defendant-Appellee-Cross-Appellant

EDWIN F. HUNTER, Jr., District Judge:

Hibernia National Bank appeals the district court’s judgment which held that Hibernia is liable to the United States for $220,000. Cross-appellant Joseph Rault appeals the district court’s judgment that he is liable to Hibernia for $110,000. The case was briefed and argued and we now affirm the judgment for the United States against Hibernia, but vacate and remand the judgment for Hibernia against Rault.

I

During 1982 the United States Army contracted with Rault Center Hotel of New Orleans for the hotel to provide lodging to new Army recruits. In the latter…