A-69220, FEBRUARY 21, 1936, 15 COMP. GEN. 713

A-69220: Feb 21, 1936

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BONDS - SURETY - SUBROGATION THE RIGHT OF SUBROGATION OF A SURETY DOES NOT EXTEND TO MATTERS WHOLLY DISCONNECTED FROM THOSE ON ACCOUNT OF WHICH PAYMENT WAS REQUIRED UNDER ITS BOND. HAVE BEEN AUTHORIZED. THE EXCESS DEPOSITS MADE BY THE IMPORTER IN CONNECTION WITH THE ENTRIES IN 1931 AND 1934 ARE WHOLLY DISCONNECTED FROM THE ABOVE MENTIONED 1930 ENTRIES ON ACCOUNT OF WHICH YOU AS SURETY WERE REQUIRED TO MAKE THE PAYMENTS AGGREGATING $84.60. THERE IS NO RIGHT OF SUBROGATION HERE. THERE IS NO LEGAL BASIS FOR THE PAYMENT OF YOUR CLAIM AND THE SETTLEMENT OF NOVEMBER 6. MUST BE AND IS SUSTAINED.

A-69220, FEBRUARY 21, 1936, 15 COMP. GEN. 713

BONDS - SURETY - SUBROGATION THE RIGHT OF SUBROGATION OF A SURETY DOES NOT EXTEND TO MATTERS WHOLLY DISCONNECTED FROM THOSE ON ACCOUNT OF WHICH PAYMENT WAS REQUIRED UNDER ITS BOND.

COMPTROLLER GENERAL MCCARL TO THE FIDELITY AND CASUALTY CO. OF NEW YORK, FEBRUARY 21, 1936:

THERE HAS BEEN CONSIDERED YOUR LETTER OF NOVEMBER 12, 1935, REQUESTING REVIEW OF SETTLEMENT NO. 0500889 DATED NOVEMBER 6, 1935, WHICH DISALLOWED YOUR CLAIM FOR $84.60 ON ACCOUNT OF PAYMENTS TO THAT AMOUNT MADE BY YOU IN MARCH AND MAY 1934 AS SURETY ON CERTAIN CUSTOMS ENTRIES MADE BY STANLEY JORDAN AND CO., INC., IN 1930.

NO QUESTION HAS BEEN RAISED AS TO THE LEGALITY OF THE COLLECTIONS AGGREGATING $84.60, MADE FROM YOU PURSUANT TO THE TERMS OF THE THREE BONDS EXECUTED BY YOU AS SURETY FOR STANLEY JORDAN AND CO., INC., IN CONNECTION WITH THE THREE IMPORTATIONS IN SEPTEMBER AND OCTOBER 1930, BUT YOU CONTEND THAT BY REASON OF THE PAYMENTS MADE BY YOU ON SAID BONDS YOU BECAME SUBROGATED TO THE RIGHTS OF STANLEY JORDAN AND CO., INC., WITH RESPECT TO TWO DEPOSITS MADE BY SAID COMPANY IN CONNECTION WITH TWO OTHER IMPORTATIONS--- ONE IN JANUARY 1931, AND THE OTHER IN JUNE 1934--- AND ON ACCOUNT OF WHICH REFUNDS TO SAID COMPANY IN THE AMOUNTS OF $39.90 AND $72, RESPECTIVELY, HAVE BEEN AUTHORIZED.

THE EXCESS DEPOSITS MADE BY THE IMPORTER IN CONNECTION WITH THE ENTRIES IN 1931 AND 1934 ARE WHOLLY DISCONNECTED FROM THE ABOVE MENTIONED 1930 ENTRIES ON ACCOUNT OF WHICH YOU AS SURETY WERE REQUIRED TO MAKE THE PAYMENTS AGGREGATING $84.60. HENCE, THERE IS NO RIGHT OF SUBROGATION HERE. FURTHERMORE, FROM AUGHT THAT APPEARS THERE MAY BE OTHER CREDITORS OR SURETIES OF THIS IMPORTER WITH CLAIMS EQUAL OR SUPERIOR TO YOURS.

ACCORDINGLY, THERE IS NO LEGAL BASIS FOR THE PAYMENT OF YOUR CLAIM AND THE SETTLEMENT OF NOVEMBER 6, 1935, MUST BE AND IS SUSTAINED.