Balboa Insurance Company v. The United States

How courts have described this case

Verbatim parenthetical descriptions written by other courts when citing this decision. Ranked by citation-network relevance.

• ruling that a surety could maintain an action against the government to recover an allegedly improper progress payment after the surety notified the government of the contractor’s default
• concluding that “a surety, as [a] bondholder is as much a party to the [g]overnment contract as the contractor” and so may be sued by the gov- ernment
• holding that a surety bond “creates a three-party relationship, in which the surety becomes liable for the principal’s debt or duty to the third party obligee (here, the government).”
• noting that the subrogation claim arises \upon notification by the surety of the unsatisfied claims of the material-men\
• identifying eight factors considered “to be important in determining whether the Government has exercised reasonable discretion in distributing funds”
• characterizing a surety as a three-party agreement whereby the principal becomes liable for the debt of an obligor to an obligee

Source: CourtListener parenthetical corpus (CC0).