Filed - Supreme Court of Texas

I. SUMMARY OF RESPONSE
The trial court correctly deducted the judgment liability and taxes the
McCulloughs included in their net worth calculation because:
the judgment liability is a contingent liability not includable in the net worth
calculation as held in this Court’s decision in Anderton v. Cawley, and accrual is
not warranted under GAAP; and
the tax liabilities are not includable in the net worth calculation because they are
not current liabilities for which accrual is warranted under GAAP; they are
imaginary liabilities raised for the purpose of reducing the bond.
The trial court correctly refused to reduce the supersedeas bond because the
McCulloughs failed to show that posting additional security would cause them
substantial economic harm.
II.
INTRODUCTION
On July 14, 2011, the 416 th District Court of Collin County entered a judgment
against the McCulloughs for $1.2 million following a jury trial on claims that Robert
McCullough stole commissions from SMA. 1 The McCulloughs appeal from that
judgment.
On August 16, 2011, the McCulloughs filed affidavits of net worth with the trial
court. 2 The affidavits showed a net worth of $325,600.00. In arriving at their net worth,
the McCulloughs included $365,000.00 of the $1.2 million judgment liability, and two
1 CR 409-412.
2 SCR 45, 48.
APPELLEES’ RESPONSE TO MOTION TO REVIEW ORDER ON SUPERSEDEAS BOND – Page 2