Carter Real Estate & Dev., Inc. v. Builder's Serv. Co

In Carter Real Estate & Dev., Inc. v. Builder's Serv. Co., 718 S.W.2d 828, 830 (Tex. App.--Austin 1986, no writ), Builder's, the judgment creditor, objected in the appellate court to the sufficiency of a supersedeas bond, contending that the sureties did not own sufficient property to secure the obligation. Id. at 831. The Austin Court of Appeals ordered a new supersedeas bond with sufficient sureties, which Carter Real Estate did not meet. Id. The Austin Court of Appeals held that the sureties remained liable, even though the court determined that their bond was insufficient to continue suspending execution of the judgment, because "the insufficient bond nevertheless accomplished 'the very purpose for which it was intended by procuring for the principal obligor' an abatement of the writ of execution that would otherwise have been available to Builder's." Id. Because the sureties "received the full benefit of their suretyship contract," they were "'in no position now to say that they are not bound by the contract.'" Carter Real Estate, 718 S.W.2d at 831.