American Casualty Company of Reading, Pennsylvania, and R. & W. Equipment, Inc. v. Arrow Road Construction Co. And Camco Construction Co., Inc.

This action involves a claim under the Public Buildings and Works Act (Miller Act), sec. 2, 49 Stat. 794 (1935), 40 U.S. C. § 270b (1958), for labor and material furnished to defendants by use-plaintiff Arrow Road Construction Co. (hereinafter Arrow Road). The District Court had jurisdiction pursuant to the provisions of the above mentioned section of the Miller Act, and this Court has jurisdiction under 28 U.S.C. § 1291 .

The pertinent facts are as follows:

On or about March 3, 1959, defendant Cameo Construction Co., Inc. (hereinafter Cameo) entered into a written contract with the United States of America for work at Vandenberg Air Force Base. Defendant American Casualty Company of Reading, Pennsylvania (hereinafter American Casualty) executed and delivered to the United States a payment bond wherein Cameo was the principal. Cameo subcontracted to defendant R & W Equipment Inc. (hereinafter R & W) certain grading and excavating work required by the prime contract. R & W commenced work but a work stoppage temporarily prevented it from proceeding with the work.

Arrow Road contends that when it was again possible for the grading and excavating work to be resumed, R & W informed…