With no explanation, chose the best option from "A", "B", "C" or "D". had a superior right to the fund. A Pearlman v. Reliance Insurance Co., 371 U.S. 132, 141-42, 83 S.Ct. 232, 237, 9 L.Ed.2d 190 (1962), establishes that a surety has an equitable right of subrogation to contractor funds retained by the government when the surety pays debts of the contractor to subcontractors pursuant to a payment bond. IFIC paid bond claims totalling more than $100,000 and claims that it is entitled to the entire balance of $34,767.50. USPS, however, relying on United States Fidelity & Guaranty Co. v. United States, 201 Ct.Cl. 1, 475 F.2d 1377 (1973), argues that a payment-bond surety lacks standing to assert a right of equitable subrogation until it shows that it has fully paid the claims of the subcontractors arising out of the contract 236, 242, 647 F.2d 1082, 1086 (<HOLDING>), cert. denied, 454 U.S. 863, 102 S.Ct. 322, 70

A: holding that if contractor is hable to sub that liability though not yet satisfied by payment might well constitute actual damages to the contractor and sustain their suit under rule that contractor may only sue to recover its own damages
B: recognizing that while in a diversity case a federal court may not address the plaintiffs claim unless the plaintiff has standing to sue under state law the plaintiff must also meet article iii standing requirements
C: holding that a suretys standing to sue  comes from the fact that it is also subrogated to  the contractor
D: holding that employers have standing to sue
C.