Republic National Bank of Dallas v. Whitten

DIXON, Chief Justice.

Appellee Bernard Whitten, Trustee in Bankruptcy of TexMex Corporation, hereinafter called TexMex, sued Republic National Bank of Dallas, hereinafter called the Bank, alleging that the Bank had diverted corporate funds of TexMex to its own use prior to the latter’s bankruptcy by requiring TexMex to pay a $65,000 personal note of Robert Yarber, President of TexMex, out of the proceeds of a $257,000 loan made by the Bank to TexMex.

Both appellant and appellee filed motions, for summary judgment. Appellee’s motion was sustained. Judgment was rendered against the Bank for…