B-155908: Jan 22, 1965

WE STATED AS FOLLOWS: "IN THE PEARLMAN CASE THE COURT WAS ABLE CONCLUSIVELY TO ADJUDICATE THE RIGHTS OF ALL OF THE INTERESTED PARTIES CONCERNED. IN THIS CONNECTION IT SHOULD BE NOTED THAT THE RIGHT OF THE SURETY TO SUBROGATION IS AN EQUITABLE RIGHT AND IS PREDICATED UPON THE PAYMENT OF ALL CLAIMS FOR LABOR AND MATERIALS ARISING UNDER THE CONTRACT. "SINCE IN THIS CASE THE CLAIM OF THE SURETY IS DIS...

B-155908: May 14, 1965

BOTH CONTRACTS WERE COMPLETED AND THE WORK WAS ACCEPTED. THE CONTRACTOR WAS ADJUDGED A BANKRUPT IN APRIL OF 1964. WE HAVE BEEN ADVISED BY THE INTERNAL REVENUE SERVICE THAT FLAGG CONSTRUCTION. WE ARE INSTRUCTING OUR CLAIMS DIVISION TO DETERMINE THE TOTAL RETAINED AMOUNTS AVAILABLE FOR SET-OFF UNDER THE TWO CONTRACTS. OUR CLAIMS DIVISION WILL ASK THE INTERNAL REVENUE SERVICE TO RECOMPUTE THE TAXES I...