Lew F. Stilwell, Inc., a Corporation, and United Pacific Insurance Co., a Corporation v. United States to the Use of Air Handler, Inc., a Corporation

On May 18, 1962, appellant Stilwell entered into a prime contract with the Department of the Air Force for the total construction of a building. Appellant United Pacific Insurance Co. furnished a bond, in accordance with the requirements of the Miller Act, providing that Stilwell or United Pacific would pay for any labor or materials supplied in the prosecution of the prime contract. On May 31,1962, Stilwell subcontracted with appellee Air Handler, Inc. to do certain air conditioning, plumbing and sheet metal work to be done on the building which was the subject of the prime contract. Appellee did work on the construction pursuant to the subcontract but ceased work prior to the completion of its portion under the subcontract. Of the total subcontract price of $103,344.84, appellee was paid all of it except $34,144.06 which Stilwell refused to pay. On May 6,1963, appellee instituted this suit to collect the unpaid sum and interest and attorney’s fees. Appellants answered denying ap-pellee's right to recover and counterclaimed for $100,000.00 as damages arising out of appellee’s alleged breach of contract. The district court’s jurisdiction was invoked pursuant to the Miller Act, 40…