Thomson Machine Works Co. v. Lake Tahoe Marine Supply Co.

This action is brought against the United States under the provisions of 28 U.S.C. § 2410 , as a complaint to quiet title against lien and to foreclose lien. 'The facts of this case are as follows:

On December 10, 1952, the United States entered into a contract with Lake Tahoe Marine & Supply Co., Inc., (hereinafter referred to as “Tahoe”) for the construction of several utility boats. During the course of the work and in accordance with the terms of the contract, the government made progress payments to Tahoe totaling $197,128.88, less deliveries of $177,316.62, leaving a net balance due of $19,812.25.

On April 25, 1953 Tahoe ordered certain bronze rods for propeller shafts, for the aforementioned boats, which shafts were delivered to Tahoe, Care of Thomson Machine Works (hereinafter referred to as “Thomson”), in San Francisco. The delivery date was July 20, 1953 at which time title to the shafts passed from the supplier to Tahoe. From the time of delivery to June 14, 1954, Thomson performed work on the 21 shafts which are subject of this action, which work was of the reasonable value of $1,313.60.

On June 10, 1954 the government terminated the contract under the default…