Ncnb Texas National Bank v. The Travelers Indemnity Company, the Travelers Indemnity Company

The Travelers Indemnity Company appeals from the district court’s summary judgment, 770 F.Supp. 330, ordering it to pay NCNB Texas National Bank’s attorney’s fees incurred in seeking payment under an injunction bond. Travelers argues that NCNB has no right to attorney’s fees, since NCNB was not a party to the injunction bond. Since the bond expressly provided that NCNB’s predecessor was the beneficiary of the bond, however, we hold that NCNB was entitled to its attorney’s fees under Texas law.

I. BACKGROUND

Forestwood National Bank of Dallas issued a letter of credit to Doal Ventures, a Texas…