Champlin Petroleum Co. v. Heinz

665 S.W.2d 544, 1983 Tex. App. LEXIS 5682
CourtCourt of Appeals of Texas
DecidedDecember 30, 1983
Docket13-83-389-CV
StatusPublished
Cited by4 cases

This text of 665 S.W.2d 544 (Champlin Petroleum Co. v. Heinz) is published on Counsel Stack Legal Research, covering Court of Appeals of Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Champlin Petroleum Co. v. Heinz, 665 S.W.2d 544, 1983 Tex. App. LEXIS 5682 (Tex. Ct. App. 1983).

Opinions

[546]*546OPINION

BISSETT, Justice.

This is a venue case. Rick Heinz brought suit in the 267th District Court of Victoria County against Champlin Petroleum Company alleging a cause of action for breach of contract and damages in violation of TEX.BUS. & COM.CODE ANN. § 17.41 et seq. (Vernon Supp.1982-1983) hereinafter the “Deceptive Trade Practices Act.” Champlin Petroleum Company, hereinafter called “appellant,” filed a plea of privilege to be sued in Tarrant County, the county of residence of its registered agent, it being a foreign corporation. Rick Heinz, hereinafter called “appellee,” filed a controverting plea alleging that venue was proper in Victoria County under the provisions of TEX.REV.CIV.STAT.ANN. art. 1995 §§ 14, 27 (Vernon 1964) and under § 17.56 of the Deceptive Trade Practices Act. Trial was to a jury. In response to the jury's answers to the special issues, the trial court entered judgment overruling appellant’s plea of privilege and sustaining venue in Victoria County. We reverse.

According to appellee’s pleadings, this case when tried on the merits, will involve an interpretation of a written contract (a farmout agreement) between appellant and appellee, together with a resolution of whether or not appellant made material misrepresentations to appellee as an inducement for him to enter into the contract with appellant. At the hearing on the plea of privilege, appellee admitted that the purpose of the lawsuit was “the interpretation of that agreement.”

The only venue exception on which appel-lee offered evidence and submitted special issues was subdivision 27 of art. 1995 and § 17.56 of the Deceptive Trade Practices Act.

Subdivision 27 provides:

[fjoreign corporations ... not incorporated by the laws of this state, and doing business within this state, may be sued ... in any county where such company may have an agency or representative
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Section 17.56 of the Deceptive Trade Practices Act states that:

[a]n action brought which alleges a claim for relief under § 17.50 of this subchap-ter may be commenced in the county in which the person against whom suit is brought ... has a fixed and established place of business at the time the suit is brought ....

The jury found that the “business of defendant (appellant) was, in more or less regular and permanent form, actually conducted in Victoria County,” and that the “defendant (appellant) had a fixed and established place of business in Victoria County.” The jury failed to find that “employers with broad powers from the defendant (appellant) actually resided and worked in Victoria County.”

Appellant challenges the legal and factual sufficiency of the evidence to support the jury’s findings. In considering a “no evidence” or “insufficient evidence” point of error, we will follow the well established test set forth in Glover v. Terns General Indemnity Company, 619 S.W.2d 400 (Tex.1981); and Garza v. Alviar, 395 S.W.2d 821 (Tex.1965).

We first consider the question of whether appellant had an agency or representative in Victoria County. In Rouse v. Shell Oil Company, 577 S.W.2d 787 (Tex.Civ.App.—Corpus Christi 1979, writ dism’d), we held:

“In the situation of ‘agency,’ the agency actually conducts the business of the defendant in the county of suit; while in the situation of ‘representative,’ the representative possessing broad powers granted by the defendant resides for corporation venue purposes in the county of suit.
[A]s a general rule venue with respect to the activities conducted on behalf of a corporation lies in that county wherein the corporation’s agent or representative performs his duties ... Mere supervisory power over the activities in the county of suit by other employees on behalf of a defendant corporation is not [547]*547sufficient to constitute an ‘agency or representative’ in the county of suit.”

The leading case on the question of what constitutes an “agency or representative” for venue purposes in Milligan v. Southern Express Inc., 151 Tex. 315, 250 S.W.2d 194 (1952). In that case, the Supreme Court held that an “agency or representative” within the meaning of the venue exception refers to:

“[A] situation on which the business of the defendant is, in more or less regular and permanent form, actually conducted in the county of suit or one in which a party possessing broad powers from the defendant resides in the county, the one instance being that of ‘agency’ and the other of representative.”

Based on Milligan and our holding in Rouse, we must therefore look to the evidence for proof that either the appellant had employees in the county with the requisite authority, or that the regular business of the appellant was conducted in Victoria County in a permanent form by an agent of the appellant who resided in Victoria County.

The evidence presented by the parties shows that appellant was in the business of producing oil and gas; that it, as lessee, owned and operated 35 gas wells located on the McFaddin Ranch and 2 gas wells located on the Morrow Ranch. All wells are located in Victoria County, Texas. The gas produced from the wells was sold to Tennessee Gas Transmission Company. The gas was gathered by appellant in two different gas lines, one of which was connected directly into Tennessee Gas Transmission Company’s line, and the other into a Houston Pipeline Company line where it was transported to a Tennessee Gas Transmission Company line. Two gas compressors were located on McFaddin Ranch. Appellant had two employees who took care of the production from the gas wells. When asked to describe their duties, one of appellant’s witnesses testified:

“They tour the property every day, do what mechanical repairs are required, adjust flow rates as necessary, service the compressors and prepare production reports.”

That testimony was uncontradicted. It is conclusively shown that the employees had neither management discretion nor authority to conduct any business of any nature with third parties on behalf of appellant.

With respect to the physical properties located on appellant’s McFaddin Ranch and Morrow Ranch leases, in addition to the wells, wellhead installations, gas gathering pipelines, and two compressor stations, there was a small building, 8' by 8' in dimensions, which was situated on the McFaddin Ranch. It contained a desk, chair and telephone which the employees (gaugers) would use to call in production reports to appellant’s Corpus Christi district office. It was also used to store spare parts needed for the production of gas from appellant’s wells. None of the appellant’s business with third parties was conducted out of the small building. The evidence shows that the compressor stations were valued at approximately $400,000.00.

There is simply no evidence that appellant had any employee in Victoria County with sufficient authority to meet the standards established in Milligan and in Rouse

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Ruiz v. Conoco, Inc.
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Champlin Petroleum Co. v. Heinz
665 S.W.2d 544 (Court of Appeals of Texas, 1983)

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665 S.W.2d 544, 1983 Tex. App. LEXIS 5682, Counsel Stack Legal Research, https://law.counselstack.com/opinion/champlin-petroleum-co-v-heinz-texapp-1983.