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B-201465 1 (1981-08-11)

handle is hein.gao/gaobadjql0001 and id is 1 raw text is: V 0 1 S/. \THE COMPTROLLER GENERAL DECISION OF THE UNITED STATES WASHINGTON, 0. C. 20548 IVNI FILEB-201465 DATE: August 11, 1981 MATTER OFCommercial Union Insurance Company DIGEST: I. Surety may not offset its loss on one contract against balance existing on another contract even though surety has bonded same company under each contract. 2. Blanket assignment to bank may not be recognized as valid assignment under Assignment of Claims Act. However, if bank is able to provide any evidence to substantiate validity of assignment as to subject contract, bank may be paid so long as Government is indemnified. The Department of the Army (United States Corps of Engineers) awarded contract No. DACA45-74-C-0205 to the Wright Air Conditioning,.-Plumbing, & Heating Co. (Wright) on April 1, 1974. Wright successfully completed the contract in August 1979, and the Army holds $29,000 payable under the contract. The Special Disbursing Officer, Omaha District, Corps of Engineers, Omaha, Nebraska, requests our decision as to whom this sum should be paid. The performance and payment bond surety on the contract, the Commercial Union Insurance Company (Commercial), maintains that it should receive at least $25,174.89 of the sum. City Bank and Trust Company of Kansas City, Missouri (formerly Grand Avenue Bank and I Trust Company), also claims the entire sum. Commercial's claim is based on two grcunds. First, the surety in a Missouri court action has recited that it has made payments (totaling about $22,000) to laborers and suppliers under payment bonds issued to Wright under separate contracts unrelated to the subject contract. Because of the losses incurred on these unrelated contracts, the surety is of the IWOO

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