Industrial Bank of Washington v. United States

424 F.2d 932 (1970)

From our private database of 46,100+ case briefs, written and edited by humans—never with AI.

Industrial Bank of Washington v. United States

United States Court of Appeals for the District of Columbia Circuit
424 F.2d 932 (1970)

  • Written by Liz Nakamura, JD

Facts

Art’s Decorating and Cleaning Company (ADCC) held a government contract to provide cleaning services for a General Services Administration (government) (defendant) building. The government took out a performance bond from Reliance Insurance Company (Reliance) (defendant) to protect against loss if ADCC defaulted. ADCC assigned its right to receive compensation from the government to Industrial Bank of Washington (Industrial Bank) (plaintiff) as security for an approximately $4,000 loan. ADCC subsequently defaulted on its contract with the government. The government terminated ADCC’s contract and hired another contractor to complete the work at a higher rate, resulting in a contract loss to the government. The government’s contract loss was covered by Reliance as the government’s surety. At the time of default, the government owed ADCC approximately $4,700 for work already performed. Industrial Bank filed a claim with the government to recover the $4,000 it loaned ADCC from the monies the government owed ADCC for work performed. The government denied Industrial Bank’s claim, stating that the unpaid balance would be used to repay Reliance for covering the government’s contract losses under the performance bond. Industrial Bank sued the government and Reliance in district court, arguing that, because ADCC assigned its right to receive compensation from the government to Industrial Bank, Industrial Bank was entitled to enforce ADCC’s compensation claim against the government as ADCC’s assignee. The government and Reliance countered and moved for summary judgment, arguing that Reliance had priority to collect against the undisbursed contract funds because, as the government’s surety, Reliance was entitled to subrogate the government’s ability to seek contract remedies and damages from ADCC for the default. The district court denied Industrial Bank’s claim. Industrial Bank appealed.

Rule of Law

Issue

Holding and Reasoning (Per curiam)

What to do next…

  1. Unlock this case brief with a free (no-commitment) trial membership of Quimbee.

    You’ll be in good company: Quimbee is one of the most widely used and trusted sites for law students, serving more than 745,000 law students since 2011. Some law schools—such as Yale, Berkeley, and Northwestern—even subscribe directly to Quimbee for all their law students.

    Unlock this case briefRead our student testimonials
  2. Learn more about Quimbee’s unique (and proven) approach to achieving great grades at law school.

    Quimbee is a company hell-bent on one thing: helping you get an “A” in every course you take in law school, so you can graduate at the top of your class and get a high-paying law job. We’re not just a study aid for law students; we’re the study aid for law students.

    Learn about our approachRead more about Quimbee

Here's why 745,000 law students have relied on our case briefs:

  • Written by law professors and practitioners, not other law students. 46,100 briefs, keyed to 987 casebooks. Top-notch customer support.
  • The right amount of information, includes the facts, issues, rule of law, holding and reasoning, and any concurrences and dissents.
  • Access in your classes, works on your mobile and tablet. Massive library of related video lessons and high quality multiple-choice questions.
  • Easy to use, uniform format for every case brief. Written in plain English, not in legalese. Our briefs summarize and simplify; they don’t just repeat the court’s language.

Access this case brief for FREE

With a 7-day free trial membership
Here's why 745,000 law students have relied on our case briefs:
  • Reliable - written by law professors and practitioners, not other law students
  • The right length and amount of information - includes the facts, issue, rule of law, holding and reasoning, and any concurrences and dissents
  • Access in your class - works on your mobile and tablet
  • 46,100 briefs - keyed to 987 casebooks
  • Uniform format for every case brief
  • Written in plain English - not in legalese and not just repeating the court's language
  • Massive library of related video lessons - and practice questions
  • Top-notch customer support

Access this case brief for FREE

With a 7-day free trial membership