Clearwater Constructors, Inc. v. Gutierrez

626 S.W.2d 789, 1981 Tex. App. LEXIS 3927
CourtCourt of Appeals of Texas
DecidedJuly 22, 1981
Docket16559
StatusPublished
Cited by7 cases

This text of 626 S.W.2d 789 (Clearwater Constructors, Inc. v. Gutierrez) 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
Clearwater Constructors, Inc. v. Gutierrez, 626 S.W.2d 789, 1981 Tex. App. LEXIS 3927 (Tex. Ct. App. 1981).

Opinion

OPINION

CADENA, Chief Justice.

Defendant, Clearwater Constructors, Inc., appeals from an order of the district court of Bexar County overruling its plea of privilege in a case in which plaintiff, Irma Gutierrez, seeks to recover for loss of consortium because of the death of her husband, Juan Gutierrez, resulting from an on-the-job injury which he sustained in Be-xar County.

Plaintiff alleged that her husband’s death was proximately caused by the negligence and gross negligence of his employer, Clear-water. She also based her claim on the theory that she was the third party beneficiary to a contract between Clearwater and the United States Army Corps of Engineers which contained provisions requiring Clear-water to comply with certain “safe construction practices and techniques which were incorporated as part of that contract and which were prescribed by the Corps of Engineers.” Plaintiff alleged that Clear-water’s failure to comply with such contractual provisions resulted in her husband being exposed to the danger which caused his death.

In her third amended controverting affidavit, which properly incorporated the allegations in her third amended original petition, plaintiff asserted that venue was properly laid in Bexar County under subdivisions 4, 5, 9a, 23 and 27 of the general venue statute, Article 1995, Tex.Rev.Civ. Stat.Ann. (Vernon 1964).

The trial court made the following findings of fact and conclusions of law which are pertinent:

a. Certain specified conduct on the part of Clearwater constituted negligence which proximately caused the injury and death of plaintiff’s husband. Although the instrument containing the findings of fact originally embodied a finding that Clearwater’s conduct constituted gross negligence, such portion was deleted by the trial court.

b. Clearwater is a foreign corporation and had an agent or representative in Be-xar County, Texas, at the time of the death of plaintiff’s husband and the filing of this suit.

c. The contract between Clearwater and the Corps of Engineers required that Clear-water make periodic inspections of the construction site to assure “that the conduct of the job by” Clearwater “would be safe and would include a minimum of accidents and injuries to employees.” All of Clearwater’s employees and their spouses and dependents were third party beneficiaries of this contract.

d. The contract between Clearwater and the Corps of Engineers was performable in Bexar County and the negligence of Clear-water occurred in Bexar County.

e. Because of the death of her husband, plaintiff suffered loss of consortium.

Our Worker’s Compensation Act, Article 8306, § 3, Tex.Rev.Civ.Stat.Ann. (Vernon 1967), provides that an employee of a subscriber shall have no right of action against his employer for damages for personal injuries, “and the representatives and beneficiaries of deceased employees shall have no right of action against such subscribing employer . . . for damages for injuries resulting in death, but such employees and their representatives and beneficiaries shall look for compensation solely to the association, as the same is hereinafter provided for.”

In Reed Tool Company v. Copelin, 610 S.W.2d 736, 739 (Tex.1980), our Supreme Court held that section 3 of Article 8306 precluded the wife of an employee from maintaining a cause of action for loss of consortium resulting from the employer’s negligence or gross negligence. Since plaintiff failed to prove a cause of action *791 based on negligence, subdivision 9a does not authorize the maintenance of this suit in Bexar County. Goodpasture, Inc. v. Hosch, 568 S.W.2d 662, 664 (Tex.Civ.App.—Houston [14th Dist.] 1978, no writ).

Under Subdivision 27, suit may be filed against a foreign corporation in any county in which the cause of action, “or a part thereof,” arose, or in any county where such corporation may have an agency or representative.

It is clear that, under Copelin, plaintiff cannot maintain venue in Bexar County under that portion of subdivision 27 which allows a foreign corporation to be sued in any county in which a part of plaintiff’s cause of action arose on the theory that she proved a cause of action for negligence. However, she insists that as a third party beneficiary to the contract between Clear-water and the Corps of Engineers she proved a cause of action for the breach, in Bexar County, of Clearwater’s contractual duty concerning “safe construction techniques and practices.”

Although there has been general acceptance of the third party beneficiary doctrine as an exception to the rule that a contract may be enforced only by the parties to the contract, the courts have had difficulty in formulating precise rules useful in determining when a third person has a sufficient interest in the performance of a contract entered into by others to allow him to enforce the provisions of the contract. See, generally, Note, 57 Colum.L.Rev. 406 (1957).

Perhaps the most widely used “test” is that a person who wishes to enforce a contract to which he is not a party must show that the contract was intended for his benefit in either all or part of its contemplated performance. Some courts, including those of this state, add that if there is doubt concerning such intent the doubt will be resolved against the existence of the required intent, since parties are presumed to contract for themselves. O’Boyle v. Dubose-Killeen Properties, Inc., 430 S.W.2d 273, 279-80 (Tex.Civ.App.—Dallas 1968, writ ref’d n. r. e.).

At best, intent has furnished a somewhat confusing basis for decision. The courts have been unable to agree on whether the controlling intent is that of the promisor, the promisee or the mutual intent of the contracting parties. Note, 45 Va.L.Rev. 1226,1228 (1959). In Banker v. Breaux, 133 Tex. 183, 128 S.W.2d 23, 24 (1939), our highest tribunal said that a third party cannot enforce a contract to which he is not a party unless it is “shown that the contracting parties intended to make same for his benefit.” In Casey v. Watts, 130 S.W.2d 396, 398 (Tex.Civ.App.—Waco 1939, writ dism’d judgmt cor.), the Court said that the third party must establish that the contracting parties “intended to make the contractual provision in question primarily for the benefit of” the third party and that the promisor “had promised to pay the indebtedness to” the third party. (Emphasis added.)

Attempts to avoid the difficulties inherent in the intent test by distinguishing on the basis of direct and remote benefit to the third party are of little or no help. No decision has given a meaningful definition of “direct benefit” and the suggested distinction is deprived of substance by holdings that a “direct” beneficiary is one who is contemplated, intended or recognized as such by the parties to the contract. Johnson Farm Equipment Company v. Cook,

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Ruiz v. Conoco, Inc.
868 S.W.2d 752 (Texas Supreme Court, 1994)
Conoco, Inc. v. Ruiz
818 S.W.2d 118 (Court of Appeals of Texas, 1991)
MJR Corp. v. B & B VENDING CO.
760 S.W.2d 4 (Court of Appeals of Texas, 1988)
Untitled Texas Attorney General Opinion
Texas Attorney General Reports, 1987
Opinion No.
Texas Attorney General Reports, 1987
Sinko v. City of San Antonio
702 S.W.2d 201 (Court of Appeals of Texas, 1985)

Cite This Page — Counsel Stack

Bluebook (online)
626 S.W.2d 789, 1981 Tex. App. LEXIS 3927, Counsel Stack Legal Research, https://law.counselstack.com/opinion/clearwater-constructors-inc-v-gutierrez-texapp-1981.