California Viking Sprinkler Co. v. Pacific Indemnity Co.

This is an action based on repudiation of an oral agreement alleged to have been made by defendant to pay $7,768.13 to plaintiff in consideration of the latter’s dis missal of an action against a third party pending in a federal district court. The cause was tried and a jury gave its verdict for plaintiff. Thereupon defendant moved the court alternatively for judgment notwithstanding the verdict or a new trial. Both motions were denied and defendant noticed an appeal from the judgment entered pursuant to the jury’s verdict and from the order denying said motions for judgment notwithstanding the verdict and new trial.

The events preceding and surrounding the dispute are substantially as follows: On December 3, 1958, W, M. Wilson, doing business as Robinson and Wilson (Wilson), as general contractor, entered into a written contract with the United States of America for the construction of certain facilities at Vandenberg Air Force Base, Lompoc, California. Concurrently with execution of the contract, Wilson, as principal, and Federal Insurance Company, as surety, issued their bond pursuant to title 40, section 270b, United States Code (Miller Act) for the benefit of all persons…