Estate Administration


Old Republic Sur. Co. v. Cross, 27 S.W.3d 35 (Tex. App.—San Antonio 2000, pet. denied).


Surety was liable for Administrator’s failure to perform his duties. The trial court awarded attorney fees in excess of the amount of the bond. The appellate court reversed holding that Surety could not be liable for more than the amount of the bond because the bond did not provide for attorney’s fees in additional to the penal amount. The court also indicated that prejudgment interest should be at the equitable rate of 10%, not the 6% rate which applies to contracts ascertaining a sum payable.

Moral: The amount of a bond should be set sufficiently high to cover not only potential damages but attorney fees as well.