Thos. J. Dyer Co. v. Bishop International Engineering Co.
United States Court of Appeals for the Sixth Circuit
303 F.2d 655 (1962)
Bishop International Engineering Co. (Bishop) (defendant) was the general contractor on a project to construct a racetrack for The Kentucky Jockey Club, Inc. (Jockey Club). Bishop contracted the services of Thos. J. Dyer Co. (Dyer) (plaintiff) to perform plumbing work for a total price of $115,000. According to the subcontract agreement, Bishop’s payment to Dyer was not due until 35 days after the work was completed to the satisfaction of Jockey Club and five days after Jockey Club had paid Bishop for such work. Dyer completed the work requested and performed additional services in accordance with change orders. Jockey Club accepted the work in August 1959. It paid Bishop the price of Dyer’s work as set forth in the initial contract but did not pay for the additional work performed. Bishop then paid Dyer only for the work covered by Jockey Club, leaving a balance of $108,519.11. In December 1959, Jockey Club filed for bankruptcy protection. It never paid Bishop for all of the work performed. Dyer sued Bishop and Bishop’s bond provider, General Insurance Company of America (defendant). The court granted summary judgment in favor of Dyer, and the defendants appealed.
Rule of Law
Holding and Reasoning (Miller, C.J.)
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