Forbes

American Radiator & Standard Sanitary Corp. v. Forbes

Good Law
259 F.2d 147
United States Court of Appeals for the Ninth CircuitApril 3, 1958No. 15651California1,734 words

Opinion

Lead Opinion

Fee, J.

This is an action by a materialman who furnished materials to a subcontractor, which were used in the construction of a schoolhouse in Arizona, against the principal, which was the contractor, and the surety on a bond. After trial, upon an agreed statement of facts and a stipulation, the District Court entered judg *148 ment against the materialman. This appeal followed.

The questions of law to be decided by this Court are:

Was the contract between the principal contractor and the school district intended to confer benefit upon a third party, the appellant, who supplied goods only to a subcontractor, or was the contract a statement of the obligations of the school district and the principal contractor alone?

Where the condition of the bond is that the surety shall indemnify the school district, does any statute of the state of Arizona applicable to the situation give a right of action other than to the school district?

Is liability affected by the fact (a) that the principal contractor contracted in writing with the school district to provide and pay for all materials necessary to complete the work, (b) that the principal contractor has accepted payment of the statutory…

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