United States v. Mattingly Bridge Co.

344 F. Supp. 459, 1972 U.S. Dist. LEXIS 15278
CourtDistrict Court, W.D. Kentucky
DecidedFebruary 2, 1972
DocketCiv. A. 6902
StatusPublished
Cited by19 cases

This text of 344 F. Supp. 459 (United States v. Mattingly Bridge Co.) is published on Counsel Stack Legal Research, covering District Court, W.D. Kentucky primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
United States v. Mattingly Bridge Co., 344 F. Supp. 459, 1972 U.S. Dist. LEXIS 15278 (W.D. Ky. 1972).

Opinion

OPINION

ALLEN, District Judge.

This action is submitted to the Court on the motions of the defendants to dismiss it for lack of jurisdiction. The action was brought by the plaintiff purportedly under the Miller Act, Title 40 U.S.C.A. § 270a(a), (b), (c), and (d), and the amount in controversy exceeds $10,000.

It is alleged in the complaint that Jack L. Miller, the use plaintiff doing business as Miller Lumber Company, Augusta, Kentucky, furnished materials to the defendants, Mattingly Bridge Company, Inc. and Goebel Mattingly, in the sum of $27,178.32 for use on interstate highway projects conducted by the United States of America through its Bureau of Public Roads and the Commonwealth of Kentucky through its Department of Highways and that he has been paid nothing by said defendants on the amount owing for the materials.

Paragraph 3 of the complaint alleges that the materials were used by the defendants for the construction, alteration or repair of public works of the United States and the Commonwealth of Kentucky on Federal projects known as interstate highway construction.

*461 Paragraph 4 alleges that defendant, United States Fidelity and Guaranty Company, hereinafter referred to as USF&G, is the surety upon the contract of Mattingly Bridge and has executed appropriate bonds to protect the United States of America on behalf of the plaintiff in the supplying of material sold and furnished by the plaintiff to the defendants on the jobs and projects identified in the pleading.

While the averments in the complaint are sufficient to bring the' plaintiff within the scope of the Miller Act, it appears from an uncontradicted exhibit that no bond has been issued to the United States of America and that the contract which was entered into by Mat-tingly Bridge is with the Commonwealth of Kentucky for the construction of a portion of 1-264 in Jefferson County, Kentucky.

Likewise, the bond which was executed by Mattingly Bridge runs in favor of the Commonwealth of Kentucky and not of the United States of America.

Title 40 U.S.C.A. § 270a(a) (1) and (a) (2) state as follows:

“(a) Before any contract, exceeding $2,000 in amount, for the construction, alteration, or repair of any public building or public work of the United States is awarded to any person, such person shall furnish to the United States the following bonds, which shall become binding upon the award of the contract to such person, who is hereinafter designated as ‘contractor’ :
(1) A performance bond with a surety or sureties satisfactory to the officer awarding such contract, and in such amount as he shall deem adequate, for the protection of the United States.
(2) A payment bond with a surety or sureties satisfactory to such officer for the protection of all persons supplying labor and material in the prosecution of the work provided for in said contract for the use of each such person. Whenever the total amount payable by the terms of the contract shall be not more than $1,000,000 the said payment bond shall be in a sum of one-half the total amount payable by the terms of the contract. Whenever the total amount payable by the terms of the contract shall be more than $1,000,000 and not more than $5,000,000, the said payment bond shall be in a sum of 40 per centum of the total amount payable by the terms of the contract. Whenever the total amount payable by the terms of the contract shall be more than $5,000,000 the said payment bond shall be in the sum of $2,500,000.’’

The purpose of the Miller Act is to provide security of payment for suppliers who provide material for the public work of the United States. This security is necessary because such suppliers do not have enforceable rights for their compensation against the United States and cannot acquire a lien on property of the United States. United States v. Munsey Trust Co., 332 U.S. 234, 67 S.Ct. 1599, 91 L.Ed. 2022 (1947). While the Act is to be construed liberally, see Irwin v. United States, 316 U.S. 23, 62 S.Ct. 899, 86 L.Ed. 1241, it is the opinion of the Court that it does not apply where the work in question was not contracted for by the United States or by an agency of the United States or a person acting directly as an agent of the United States.

The wording of Title 40 U.S.C. A. § 270a, subsection (a), indicates strongly that Congress in using the word “contracts” had in mind only contracts between the United States and prime contractors, and not contracts to which the United States was not a party. In that section Congress, after speaking of the awarding of a contract for the construction and repair or erection of public buildings or works of the United States, speaks of the requirement of bonds being furnished to the United States. It seems clear to the Court that the contract referred to in that section *462 of the statute is one made by the United States or someone directly on its behalf.

Title 40 U.S.C.A. § 270a(a) (1) speaks of a performance bond satisfactory to the officer awarding the contract. The performance bond is for the benefit of the United States, and where there is no contract involving the United States it would need no bond.

Title 40 U.S.C.A. § 270a(a) (2) speaks of payment bonds and requires that they be in at least forty percent of the amount payable where the contract is in excess of $1,000,000. That section relates back to the first paragraph of the statute which refers to bonds in favor of the United States, and again where there is no contract in which the United States was involved it would not require a bond.

The plaintiff contends strenuously that the building of an interstate highway is a public project or work contemplated by the Miller Act. The answer to this contention is that this would be true where the United States contracted for the construction of the interstate highway involved, but such is not the case. It is noted in the cases that the plaintiff has cited, and particularly in Irwin, that the United States was a contracting party and that a bond was required in its favor. Likewise, in the case of United States v. Phoenix Assurance Co. of New York, 163 F.Supp. 713 (D.C.N.D.Cal.S.D., 1958), the contract was not formally in the name of the United States but the persons making the contract for the public building had authority to contract on behalf of the United States and were in fact Army personnel of the United States.

In the case of D. R. Smalley & Sons, Inc. v. United States, 372 F.2d 505, 178 Ct.Cl. 593, the plaintiff, an Ohio corporation engaged in the highway construction business, sued the United States for damages in the sum of $6,000,000 in connection with six contracts executed for the purpose of building certain Federal aid highway projects in the State of Ohio. The projects were a part of the Federal system of interstate highways on which the United States would reimburse the State of Ohio to the extent of ninety percent of its total cost, in accordance with Title 23 U.S.C.A. § 120, subsection (c) (1964).

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Cite This Page — Counsel Stack

Bluebook (online)
344 F. Supp. 459, 1972 U.S. Dist. LEXIS 15278, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-v-mattingly-bridge-co-kywd-1972.