Teacher:In this task, you will be shown a prompt from a judicial decision and multiple holding statements derived from citations following text in a legal decision. Holdings represent the governing legal rule when the law is applied to a particular set of facts. There are five answer choices for each citing text. The correct answer is the holding statement that corresponds to the citing text. The four incorrect answers are other holding statements. You should find the correct option. There is a <HOLDING> token in the position of the citing text prompt where the holding statement was extracted.
Teacher: Now, understand the problem? Solve this instance: Funding, 15 Cl.Ct. at 502. In the case sub judice, the surety assignee declined to file suit against the government as a result of the government's failure to pay the proper party. 11 . Each of the additional cases plaintiffs rely upon in their Response to Defendant's First Motion to Dismiss involved a surety that filed suit against the government based on the doctrine of equitable subrogation. Pearlman, 371 U.S. at 141-42, 83 S.Ct. 232 (involving a surety that sued the government pursuant to equitable sub-rogation when the surety financed a project to completion after default by the prime contractor); Prairie State, 164 U.S. at 231-32, 17 S.Ct. 142 (determining that a surety was entitled to assert equitable subrogation against the government); Aetna Cas. & Sur., 845 F.2d at 974-76 (<HOLDING>); Balboa, 775 F.2d at 1162-63 (ruling that a
Holding statements: (A) holding that a performance bond surety was allowed to sue the government based on the doctrine of equitable subrogation (B) holding that there is no privity of contract between the government and a surety since the government is not a party to the agreement between the surety and the contractor the government never undertakes an obligation to the surety (C) holding that taxable costs included only the premium on a surety bond posted on appeal not the fees paid for letters of credit to secure the bond where the state statute and court rule only specifically allowed for premium on any surety bond (D) holding that doctrine of impossibility of performance did not apply so as to entitle surety to partial remission of forfeited bond (E) recognizing that the gjovernment as obligee owes no equitable duty to a surety unless the surety notifies the government that the principal has defaulted under the bond notice by the surety is essential before any governmental duty exists
Student:
(A)