Consolidated Electric Co. v. United States of America for Use and Benefit of Gough Industries, Inc.

In this Miller Act (40 U.S.C. §§ 270a-270d (1964)) case, the prime contractor and his surety appeal from a summary judgment granted by the District Court against them and a subcontractor and in favor of one who supplied material to the subcontractor. The subcontractor, Consolidated Electric Company, did not appeal.

Jacob J. Peretz, doing business as Peretz Construction Co., entered into a contract with the United States. Under the terms of this prime contract, Peretz agreed to furnish the necessary labor and materials to pursue and complete construction on what is known as the Animal Laboratory at the Veterans’ Administration Center, Los Angeles, California. In accordance with the requirements of the contract and with the provisions of the Miller Act, Peretz and Standard Accident Insurance Company, as surety, executed and delivered to the Veterans’ Administration a bond in the amount of $203,300.00. The condition of the bond was that Peretz promptly pay all who supplied him with labor or materials in the prosecution of the work contemplated by the contract and any authorized extension or modification thereof.

Peretz contracted with Consolidated Electric Company for the latter to…