Southern Surety Co. v. Sealy Independent School Dist.

Suit by Southern Surety Company (1) against Sealy independent school district for balance of $12,267.45 on a school building contract; (2) against the trustees of the district for wrongfully diverting $6,200 from the district building fund; and (3) against Sealy National Bank for wrongfully appropriating such diverted fund. The school district reconvened for $35,000, alleging breach of the building contract by the surety company and Wertz, the original contractor. Trial to court without a jury, and judgment- denying the surety company any recovery and awarding a found net balance in favor of…