Indiana Lumbermen's Mutual Insurance Co. v. State

OPINION

SAM J. DAY, Justice.

Introduction

In this appeal from an adverse judgment on two statutory performance bonds, we must decide whether an accord and satisfaction has occurred as to the disputed amounts made the basis of the underlying lawsuit. Because we conclude that an accord and satisfaction has occurred, we reverse the trial court’s judgment and render judgment that the State of Texas take nothing.

Background Facts

In March and July 1992, Texas Choctaw, Inc. (Choctaw) contracted with the State of Texas to perform certain highway work in Young and Archer Counties. Indiana Lumbermen’s…