Kendziorski v. Saunders

Jeffrey Kendziorski sued Robert Marshall for fraud and was awarded compensatory damages and court costs. Marshall appealed the justice courts judgment to the county court, and Don Saunders signed as a surety on the appeal bond. On appeal, Kendziorski was awarded compensatory damages, court costs, and exemplary damages. After Marshall died, Kendziorski attempted to obtain the judgment from Saunders. While admitting liability for the court costs and compensatory damages, Saunders denied liability for exemplary damages. Kendziorski sued Saunders on the grounds that he breached the surety agreement and that he fraudulently entered the surety agreement with no intention of paying under the terms of the bond and with insufficient assets to cover the limits of the bond. The county court granted partial summary judgment in favor of Kendziorski and concluded that Saunders was liable for compensatory damages and court costs. Subsequently, the court granted Saunderss motion for summary judgment and held that Saunders was not liable for exemplary damages or for fraud. Kendziorski appeals both the partial denial of his summary judgment motion and the granting of Saunderss summary judgment motion. We will affirm the courts judgment regarding Saunderss lack of liability for fraud, reverse the courts judgment regarding Saunderss liability for breach of contract claim and for exemplary damages, and remand the case for consideration of attorneys fees and pre-judgment interest.