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Maryland Casualty Co. v. New Jersey Shipbuilding & Dredging Co.

June 15, 1931

MARYLAND CASUALTY CO.
v.
NEW JERSEY SHIPBUILDING & DREDGING CO.



Appeal from the District Court of the United States for the District of New Jersey; Guy L. Fake, Judge.

Author: Thompson

Before BUFFINGTON, WOOLLEY, and THOMPSON, Circuit Judges.

THOMPSON, Circuit Judge.

This is an appeal by the Maryland Casualty Company, hereinafter designated the Casualty Company, from a judgment recovered against it on a verdict for $15,000 as damages the New Jersey Shipbuilding & Dredging Company, hereinafter designated the Dredging Company, plaintiff in the court below, claimed to have sustained in loss of profits through the breach of an alleged contract with the Casualty Company for the performance of dredging work in Staten Island Sound.

The Casualty Company, appellant, was surety for the performance by the Seely Engineering Company of a contract with the United States for dredging and removing rock in Staten Island Sound. Upon default of the Seely Company in completion of its contract, the Casualty Company become liable to the United States for completion or the cost of completion of the contract. It, therefore, sent out invitations to complete the work, one of which, in the following form, was sent to the Dredging Company:

"July 11, 1927.

New Jersey Shipbuilding & Dredging Co.

50 Broad Street,

New York City.

Gentlemen:

The contract of the Seely Engineering Company for the dredging and removal of rock in the New York and New Jersey Channels has been declared in default by the War Department.

The War Department has called upon the Maryland Casualty Company, as surety on the bond of the Seely Engineering Company, to complete the Seely Engineering Company's contract. Therefore, the Maryland Casualty Company is interested in bids for the completion of the Seely Engineering Company's contract for the dredging and removal of rock in the New York and New Jersey Channels.

The Maryland Casualty Company will receive bids for the completion of this contract at its office at 105 William Street, New York City, Room 603 on Thursday, July 14th, at 10:00 o'clock, and will award the contract for the completion of the Seely Engineering Company's contract to the lowest responsible bidder; reserving however the right to reject any or all bids submitted.

If you are interested, we would be glad to receive your ...


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