Opinion ID: 1955768
Heading Depth: 1
Heading Rank: 1

Heading: Loring Contract

Text: Prior to August 1, 1955, Blenkhorn assigned certain progress payments to the defendant, and from the payments received by him from the United States paid the defendant on his loans as follows: Assignment Payment by U. S. Payment to Bank April 8  loan $9,200 $ 9,200.45 April 15  $ 9,200 May 3   12,750 16,439.55 May 11 12,750 July 28  renewal loan 8,000 12,670.00 Aug. 12 3,086.71 __________ $25,036.71 The three assignments were not perfected under the Assignment of Claims Act, 31 U.S.C.A. § 203, and were not known to the plaintiff until after the commencement of the present litigation. The last assignment from Blenkhorn to the defendant, dated August 11th, was perfected under the federal statute, supra, with notice to the United States and to the plaintiff surety. The assignment covered all the assignor's rights, title and interest in, and to all monies due or to become due from the United States of America    under the Loring contract, and reads in part: The Assignor covenants that it will receive any moneys advanced hereof by the Assignee as a trust fund to be first applied to the payment of claims of subcontractors, architects, engineers, labor o rs, and materials, that may arise out of performance of said contract, and to the payment of premiums on any surety, bond or bonds signed with the United States of America or any Department or Agency thereof, and that it will apply the same to such payments only before using any part of the advances for any other purposes. The plaintiff acknowledged receipt of the notice and of a copy of the instrument of assignment, subject to complete reservation of our rights. All remaining payments on the Loring contract were paid directly by the United States to the defendant, as follows: Sept. 15, 1955 $3,420.00 Oct. 19, 1955 7,700.00 Mar. 12, 1956 1,931.52 Jan. 22, 1957 4,630.16 __________ (final payment) $17,681.68 The $3,420 item was at once credited to Blenkhorn's checking account and was neither retained by the defendant nor applied on Blenkhorn's loans. The $7,700 item was retained by the defendant and applied with other moneys on January 4, 1956, on Blenkhorn's loans. The $1,931.52 item was applied in part to cover checks, overdrafts and small loans with a small balance remaining in Blenkhorn's favor. The final payment of $4,630.16 has been held by the defendant in a treasurer's check pending decision in this case. The payments received by the defendant under the Loring contract and claimed by the plaintiff total $42,718.39.