Southern Industries, Inc. v. United States

This is an appeal from a judgment of the United States District Court for the District of Arizona, sitting without a jury, in which plaintiff-appellee recovered amounts allegedly due under a payment bond executed according to section 1 of the Miller Act, 49 Stat. 793 (1935), 40 U.S.C. § 270a (1958). Jurisdiction of the district court was invoked under section 2(b) of that act, 49 Stat. 794 (1935), as amended, 40 U.S.C. § 270b(b) (Supp. IV, 1962). Jurisdiction of this court is based on 28 U.S.C. § 1291 (1958).

Appellant Southern Industries, Inc., is the prime contractor with the United *223 States Bureau of Public Roads to furnish all labor, equipment, and materials to construct a roadway known as Project Grand Canyon National Park 1-A14, B-9, East Rim Drive, Coconino County, Arizona. Southern Industries, as principal, and appellant United States Fidelity & Guaranty Co., as surety, executed a payment bond to the Bureau of Public Roads. On April 5, 1960, James Bond, president of the appellee corporation, entered into a written subcontract with Southern Industries whereby Bond was to truck certain materials for Southern Industries at stated unit prices. The trial court found that…