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American Surety Co. v. Sampsell, 327 U.S. 269 (1946)
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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.
American Surety Co. v. Sampsell, 327 U.S. 269 (1946)
American Surety Co. v. Sampsell No. 142 Argued January 28, 1946 Decided February 25, 1946 327 U.S. 269
CERTIORARI TO THE CIRCUIT COURT OF APPEALS
FOR THE NINTH CIRCUIT
Syllabus
1. A bankruptcy court has equitable power to subordinate the claim of a surety for subrogation and indemnity for payments under a statutory construction bond to the claims of laborers and materialmen for whose benefit the bond was executed but who failed to file lien claims or notify the surety of their unpaid claims within the time required by the bond and the applicable state statute. P. 271.
2. Federal bankruptcy law, not state law, governs the distribution of a bankrupt’s assets to his creditors. Prudence Realization Corp. v. Geist, 316 U.S. 89. P. 272.
3. Controlling equitable principles forbid a surety from sharing a bankrupt’s assets on equal terms with creditors who are members of the class its bond was given to protect. American Surety Co. v. Westinghouse Electric Co., 296 U.S. 133. P. 272.
4. Failure to give the notice required by state law does not deprive materialmen and laborers of the protection of this rule. P. 273.
148 F.2d 986 affirmed.
A bankruptcy court subordinated the claim of a surety for subrogation and indemnity for amounts paid under a statutory construction bond to the claims of laborers and materialmen who had not filed liens or notified the surety of their unpaid claims within the time specified by the bond and the applicable state statute. 53 F.Supp. 131. The circuit court of appeals affirmed. 148 F.2d 986. This Court granted certiorari. 326 U.S. 699. Affirmed, p. 274.
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Chicago:
U.S. Supreme Court, "Syllabus," American Surety Co. v. Sampsell, 327 U.S. 269 (1946) in 327 U.S. 269 327 U.S. 270. Original Sources, accessed August 30, 2025, http://www.originalsources.com/Document.aspx?DocID=C897TIB6U93EEZ4.
MLA:
U.S. Supreme Court. "Syllabus." American Surety Co. v. Sampsell, 327 U.S. 269 (1946), in 327 U.S. 269, page 327 U.S. 270. Original Sources. 30 Aug. 2025. http://www.originalsources.com/Document.aspx?DocID=C897TIB6U93EEZ4.
Harvard:
U.S. Supreme Court, 'Syllabus' in American Surety Co. v. Sampsell, 327 U.S. 269 (1946). cited in 1946, 327 U.S. 269, pp.327 U.S. 270. Original Sources, retrieved 30 August 2025, from http://www.originalsources.com/Document.aspx?DocID=C897TIB6U93EEZ4.
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