The appellant, a bank, challenges the trial court's grant of summary judgment arguing that the appellees assumed liability under an indemnification agreement for any liability of a special purpose entity under non-recourse exceptions. The indemnification agreement functions as appellees' guaranty of all the entity's liability under the non-recourse exceptions -- whether the entity is liable for the bank's own losses or liable for third-party claims against the bank. a judgment against the borrower under a non-recourse exception is sufficient to trigger appellees' liability under the indemnification agreement. The trial court's judgment is reversed and rendered.
Wells Fargo Bank, N.A. v. Smuck
Tex. App. Dist. 14
July 17, 2013