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Pealman v. Reliance Ins. Co., 371 U.S. 132 (1962)
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General SummaryThis case is from a collection containing the full text of over 16,000 Supreme Court cases from 1793 to the present. The body of Supreme Court decisions are, effectively, the final interpretation of the Constitution. Only an amendment to the Constitution can permanently overturn an interpretation and this has happened only four times in American history.
Pealman v. Reliance Ins. Co., 371 U.S. 132 (1962)
Pealman v. Reliance Insurance Co. No. 78 Argued October 9-10, 1962 Decided December 3, 1962 371 U.S. 132
CERTIORARI TO THE UNITED STATES COURT OF APPEALS
FOR THE SECOND CIRCUIT
Syllabus
When, by reason of the contractor’s default, a surety on a payment bond given by a contractor under the Miller Act, 49 Stat. 793, has been compelled to pay debts of the contractor for labor and materials, the surety is entitled by subrogation to reimbursement from a fund otherwise due to the contractor but withheld by the Government pursuant to the terms of the contract -- even though the contractor has become bankrupt and the Government has turned the withheld fund over to the contractor’s trustee in bankruptcy. Pp. 133-142.
(a) This fund never became a part of the bankruptcy estate, and its disposition is not controlled by the Bankruptcy Act. Pp. 135-136.
(b) Prairie State Bank v. United States, 164 U.S. 227, and Henningsen v. United States Fid. & Guar. Co., 208 U.S. 404, followed. Pp. 137-139.
(c) The Miller Act, which requires separate performance and payment bonds on Government contracts, did not change the law as declared in the Prairie State Bank and Henningsen cases. Pp. 139-140.
(d) The Prairie State Bank and Henningsen cases were not overruled by United States v. Munsey Trust Co., 332 U.S. 234. Pp. 140-142.
298 F.2d 655 affirmed.
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Chicago: U.S. Supreme Court, "Syllabus," Pealman v. Reliance Ins. Co., 371 U.S. 132 (1962) in 371 U.S. 132 371 U.S. 133. Original Sources, accessed November 24, 2024, http://originalsources.com/Document.aspx?DocID=BLMFY74B1A79G58.
MLA: U.S. Supreme Court. "Syllabus." Pealman v. Reliance Ins. Co., 371 U.S. 132 (1962), in 371 U.S. 132, page 371 U.S. 133. Original Sources. 24 Nov. 2024. http://originalsources.com/Document.aspx?DocID=BLMFY74B1A79G58.
Harvard: U.S. Supreme Court, 'Syllabus' in Pealman v. Reliance Ins. Co., 371 U.S. 132 (1962). cited in 1962, 371 U.S. 132, pp.371 U.S. 133. Original Sources, retrieved 24 November 2024, from http://originalsources.com/Document.aspx?DocID=BLMFY74B1A79G58.
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