Kincaid & King Construction Co. v. United States ex rel. Olday

Appellant Kincaid & King Construction Company, Inc., is a prime contractor and appellee William Olday, d/b/a Olday Construction Company, is a subcontractor on government contract number DA-95-507-eng-792, awarded March 16, 1955. Appellee United States Fidelity & Guaranty Company is the surety of appellant under a payment bond executed pursuant to section 1 of the Miller Act, 49 Stat. 793 (1935), 40 U.S.C. § 270a(a) (2) (1958). Appellee Continental Casualty Company is the surety of Olday on an indemnity bond designed to protect appellant against losses caused by nonperformance of the subcontract by Ol-day.

On October 29, 1956, the United States for the use of Olday brought this action on the Miller Act bond in the United States District Court for the District of Alaska against appellant, appellant’s joint venturer Anchorage Builders, and their surety United States Fidelity & Guaranty Company. The complaint alleged that Olday was entitled to compensation for extra work done on the subcontract resulting from engineering errors and obstruction and delay of Ol-day’s work by appellant and its joint venturer. On November 23, the defendants answered and counterclaimed (erroneously…