EKA LIQUIDATORS v. Phillips

This case presents the question resolved today in Jackson v. Thweatt, 883 S.W.2d 171 (Tex.1994). Because the decision of the court of appeals, 883 S.W.2d 218, conflicts with our holding in Jackson, we reverse the judgment of the court below and remand the cause to the trial court for further proceedings.

Troy Phillips guaranteed two notes payable to the Heritage National Bank maturing in August 1986 and June 1987, respectively. The notes went into default on maturity, obligating Phillips on his guaranty. The FDIC acquired the notes as receiver for Heritage National Bank in September 1986,…