United States Fidelity & Guaranty Co. v. United States

This is an appeal from a judgment against the appellant surety company in an action brought against it by certain material-men and labor claimants, in the name of the United States, on a contractor’s bond. The action was brought under the Materialmen’s Act, also known as the Hurd Act (40 USCA § 270). The ease was tried before the court without a jury.

Appellant was the surety on a bond of one Rhivers, who had contracted, under date of June 16, 1926, with the United States Department of Agriculture for the improvement of a road in the Sawtooth National Forest, State of Idaho. The bond was in the amount of $11,438, in favor of the United States and all persons furnishing labor or materials to the contractor, and,was conditioned on the faithful performance of the contract by Rhivers.

Rhivers began work under the contract on July 1,1926, but within two months abandoned the job. Thereupon appellant employed the Elliott Trucking Company to proceed with the work required under the Rhiv-ers contract. The Elliott Trucking Company commenced work about October 1, 1926, and proceeded for about one month, when it also ceased and did not thereafter resume the work.

In June, 1927, the United…