Citizens National Bank in Abilene v. Texas & Pacific Railway Company

Summary

The Texas Supreme Court reversed the Court of Civil Appeals and affirmed the district court judgment that the Texas & Pacific Railway must pay the retained fund to Citizens National Bank, rejecting the intervenors' claims. The Court held that the contract provision requiring the contractor to pay laborers was intended solely for the railway's benefit and did not bar the bank's assignment. Justice Sharp dissented, arguing that the provision should benefit the contractor and intervenors.