Seaboard Surety Co., a Corporate Entity, Etc. v. United States of America for Use and Benefit of C.D.G., Inc., a Corporate Entity

This is an appeal from a judgment for $112,338.39, plus interest from July 24, 1961, in favor of a subcontractor against the prime contractor and its surety for work and labor performed on a Capehart housing project. The district court concluded that it had jurisdiction under Title 28 U.S.C. § 1352 . This court’s jurisdiction is based upon 28 U.S.C. § 1291 .

The prime contractor, a joint venture known as Desert Builders, entered into a written contract with the United States, through the Department of Navy, for the construction of 150 units of Cape-hart residential housing at the Marine Corps base, Twenty-Nine Palms, California. As required by the Capehart Act, 42 U.S.C. § 1594 (a), Desert Builders and Seaboard Surety Company executed two payment bonds covering the two mortgage areas into which the project had been divided to facilitate financing.

On October 10, 1960, appellant Desert Builders, as prime contractor, entered* into a subcontract with appellee, C.D.G., Inc., whereby the subcontractor agreed to furnish all labor and equipment necessary to comple'te the rough and finish carpentry work for the 150 units. The contract excluded the furnishing of materials. The total…