ISSC, Inc. v. Baugh Skanska Inc.

MEMORANDUM **

Baugh Skanska, Inc., and its sureties (collectively, Baugh) appeal a $182,777.91 judgment in favor of ISSC, Inc. (ISSC) on a payment bond issued under the Miller Act, 40 U.S.C. §§ 3131-34 . ISSC cross-appeals, contending the district court erred in reducing its claim based upon a wrong interpretation of a conditional release. We have jurisdiction under 28 U.S.C. § 1291 , and affirm in part and reverse and remand in part.

I.

The district court correctly determined that Nordahl Metalfab was a subcontractor for purposes of the Miller Act. Nordahl took a substantial and specific part of the Whole Barracks Renewal Project at Fort Lewis. Nordahl was responsible for customizing every piece of fabrieat *630 ed steel to meet specifications to assemble into a “completely furnished and installed system.” The balance of factors set forth in United States ex rel. Conveyor Rental & Sales Co. v. Aetna Cas. & Sur. Co., 981 F.2d 448, 451 (9th Cir.1992) favors the position that ISSC supplied structural steel to a subcontractor, not to another supplier. Thus, ISSC qualifies to make a claim under the Miller Act.

II.

ISSC does not dispute that the unconditional release signed on…