United States of America for Use of Youngstown Welding & Engineering Co. v. Travelers Indemnity Co.

The United States for the use of Youngstown Welding and Engineering Company (Youngstown) appeals from the portion of the district court’s judgment denying its claims against A.S.C. Constructors, Inc. (ASC) for breach of contract and unjust enrichment. ASC and its surety, the Travelers Indemnity Company (Travelers), cross-appeal from the district court’s amended order awarding Youngstown $173,079.41 under the Miller Act, 40 U.S.C. § 270b (1982), for materials provided by Youngstown for a construction project undertaken by ASC for the Bureau of Reclamation, Department of the Interior. We affirm.

In February 1980, ASC contracted with the Bureau of Reclamation to perform one phase of the construction of the Yuma Desalting Plant. ASC, as required by the Miller Act, furnished a payment bond to the government, with Travelers as surety. See 40 U.S.C. § 270a(a)(2) (1982). ASC asked Propipe Corporation (Propipe) to furnish aluminum bronze pipe, and Propipe in turn asked Youngstown to manufacture it. Youngstown suggested Propipe obtain progress payments from ASC by joint cheeks payable to both Youngstown and Propipe. Before any formal contract was reached between Propipe and either…