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NATIONAL SURETY CORP. v. BARTH

11 N.J. 506 (1953)

95 A.2d 145

NATIONAL SURETY CORPORATION, PLAINTIFF-RESPONDENT, v. ARTHUR F. BARTH, INDIVIDUALLY, AND TRADING AS BARTH CONTRACTING COMPANY, ET ALS., DEFENDANTS-RESPONDENTS; J. LINDSAY DE VALLIERE, DIRECTOR, ETC., CHARLES R. ERDMAN, JR., ADMINISTRATOR, ETC., DIVISION OF EMPLOYMENT SECURITY, ETC., DEFENDANTS-APPELLANTS, AND CHARLES MARTINI AND FRANK MARTINI, PLAINTIFFS-RESPONDENTS, v. ARTHUR F. BARTH, DEFENDANT.

The Supreme Court of New Jersey.

Decided March 2, 1953.

Attorney(s) appearing for the Case

Mr. Herman D. Ringle argued the cause for the appellants, Charles R. Erdman, Jr., Administrator of Public Housing and Development Authority, Department of Economic Development of the State of New Jersey, J. Lindsay De Valliere, State Commissioner of Taxation and Finance, and Division of Employment Security, Department of Labor and Industry. (Mr. Theodore D. Parsons, Attorney-General, by Mr. Chester K. Ligham, Deputy Attorney-General, attorney for and of counsel with appellants J. Lindsay DeValliere, Director, etc. and Charles R. Erdman, Jr., Administrator, etc. Mr. Charles A. Malloy, attorney for Division of Employment Security of the Department of Labor and Industry).

Mr. Charles A. Rooney argued the cause for the respondent, National Surety Corporation.

Mr. Edward V. Ryan argued the cause for the respondent, United States of America.

The opinion of the court was delivered by VANDERBILT, C.J.

This appeal, certified on our own motion, presents the question whether the State of New Jersey can set off its claim for unemployment and disability tax obligations in an action against it for moneys owing upon contracts for public housing work.

On October 31, 1947 and March 12, 1948, respectively, Arthur F. Barth, a contractor, entered into contracts with...

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