Maryland Casualty Co. v. United States

Pursuant to the terms of 40 U.S.C.A. § 270b, Ralph S. Adams, as use plaintiff, brought suit to recover money due under a contract against the Maryland Casualty Company as surety on the bond of H. J. Settergren, an intervenor in the action. Judgment was entered against both defendant and intervening defendant. They appeal.

Settergren entered into a contract to construct certain ordnance storage facilities for the United States. He, as principal, and the Maryland Casualty Company, as surety, executed a payment bond in accordance with 40 U.S.C.A. § 270a. Under its provisions the obligation of the bond was to remain in full force and effect unless the principal made prompt payment to all persons supplying labor and materials in the performance of work required by the government contract and by any duly authorized modifications thereof.

Adams, doing business as the Adams Roof Company, entered into a subcontract with Settergren to waterproof 20 ammunition storage igloos for the price of $21,240, or $1,062 per igloo. Subsequently, the specifications of the basic contract were changed by the United States Engineers, dampproofing of the igloos being substituted for waterproofing. Adams…