United States Fidelity & Guaranty Co. v. United States Ex Rel. Bartlett
Headline: Court upholds bond liability for quarrying and hauling in breakwater project, affirms judgment against contractor and surety, rejecting fraud and delay defenses and allowing workers’ wage assignments to be enforced.
Holding: The Court affirms that quarry work and hauling are covered by the contract and bond, validates laborers’ wage assignments to Bartlett, and finds no fraud or delay excusing the surety from liability.
- Treats quarrying and hauling as bond-covered work for construction projects.
- Allows enforceable wage assignments to creditors when laborers consent and deductions are made.
- Keeps surety liable absent clear fraud or prejudicial delay.
Summary
Background
A contractor hired to build a breakwater used stone taken from a distant quarry. A man named Bartlett advanced money and received assignments of some laborers’ wages, and he sued under the bond that accompanied the government contract. The contractor argued that quarry work and hauling were not part of the contract work covered by the bond, and that the wage assignments, alleged overcharges, and delay in suing should block recovery.
Reasoning
The Court explained that the contract’s purpose was to get stone placed at the breakwater, so taking stone from the quarry and hauling it to the site was necessary to perform the contract and therefore covered by the bond. Testimony showed that laborers consented to wage deductions and assignments to Bartlett, creating an enforceable claim. The record did not show the kind of deliberate overcharging that would void recovery, and credits shown on produced cards were accepted for the jury’s calculation. The Court also found no unfair delay or change in the surety’s position that would excuse liability.
Real world impact
The decision means that work away from a construction site that is necessary to complete the job can fall under a contract bond. Properly documented wage assignments can be enforced, missing bookkeeping or some errors do not automatically bar recovery, and delay or lack of early notice will not defeat a bond claim absent clear prejudice to the surety.
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