Hess & Skinner Engineering Co. v. M. M. Turney

Summary

The Texas Supreme Court affirmed the Court of Civil Appeals, holding that the Lion Bonding & Surety Company remained liable on its bond despite alleged changes in contract terms and the diversion of collateral, and that its earlier equitable assignment of the county's funds had priority over the later assignment by First National Bank. The Court reiterated that surety obligations are not discharged by the principal's good‑faith changes or by the use of collateral to satisfy other debts, and that priority among equitable assignees is determined solely by the order of assignment dates.