United States of America for the Use and Benefit of Robert Wulff and Caitlyn Wulff, Husband and Wife v. Cma, Inc. And Reliance Insurance Company

Good Law
35 Cont. Cas. Fed. 75,759·890 F.2d 1070·15 Fed. R. Serv. 3d 48·1989 U.S. App. LEXIS 18239
United States Court of Appeals for the Ninth CircuitNovember 27, 198988-4207California2,629 words

Opinion

Opinion

Thompson, J.

Robert and Caitlyn Wulff (the “Wulffs”) appeal the district court’s grant of summary judgment in favor of Reliance Insurance Company (“Reliance”) dismissing the Wulffs’ Miller Act suit filed under 40 U.S.C. § 270a. We affirm.

FACTS

CMA, Inc. (“CMA”) as the prime contractor on a federal construction project for a Veterans Administration hospital in Boise, Idaho, supplied a payment bond written by Reliance Insurance Company in favor of the United States as required by the Miller Act, 40 U.S.C. § 270a et seq. (1982). CMA subcontracted with B & K Fabricators (“B & K”) for B & K to build a smokestack as part of the hospital project. B & K completed its work on September 23, 1985, but was never paid the contract price of $6,253.

In the meantime, the Wulffs obtained an Idaho state court judgment against B & K on August 2, 1985, in the sum of $7,000 on an unrelated contract having nothing to do with the VA hospital. In an attempt to collect this judgment the Wulffs caused a writ of garnishment to be levied on CMA to recover money CMA owed to B & K on the smokestack contract. The Wulffs obtained a state court order directing CMA to pay to the Wulffs any money it owed to B & K: When CMA…

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