Ely v. General Motors Corp.

927 S.W.2d 774, 1996 Tex. App. LEXIS 3301, 1996 WL 428065
CourtCourt of Appeals of Texas
DecidedAugust 1, 1996
Docket06-95-00081-CV
StatusPublished
Cited by65 cases

This text of 927 S.W.2d 774 (Ely v. General Motors Corp.) 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
Ely v. General Motors Corp., 927 S.W.2d 774, 1996 Tex. App. LEXIS 3301, 1996 WL 428065 (Tex. Ct. App. 1996).

Opinion

OPINION

GRANT, Justice.

This is a wrongful death case in which Paul J. Ely, a deputy sheriff of Gregg County, Texas, was struck and killed by Darrell Durham, a mechanic for Dow Oldsmobile Cadillac, Inc. (hereinafter “Dow”). Ely's wife, Robin Ely (hereinafter “Ely,” referring to her as an individual and as a representative of the estate of Paul J. Ely), brought a wrongful death suit against Durham, Dow, and General Motors. The trial court severed the claims against General Motors and granted General Motors’ motion for summary judgment. Ely appeals.

On March 18,1994, Durham was test-driving a Cadillac El Dorado on FM Road 2276 after performing warranty service work on the vehicle. The El Dorado, which had been manufactured by General Motors, had been brought to Dow for warranty service work. 1 The owner had complained that the wheels of the Cadillac vibrated when it was travelling at speeds greater than eighty-five miles per hour. 2

While he was test-driving the Cadillac, Durham lost control of the vehicle and careened off the road and into the yard of Paul Ely. Ely, who was working in his yard with his two young daughters, Tiffany Dawne and Cheyenne Haley, was hit by the Cadillac and killed.

By her sole point of error, Ely contends that the trial court erred in rendering summary judgment for General Motors because the motion and the supporting evidence were insufficient to establish the absence of a necessary element of each of its causes of action as a matter of law. Summary judgment is proper when no genuine issue exists on any material fact and the movant is entitled to judgment as a matter of law. Tex.R. Civ. P. 166a(c).

The Texas Supreme Court has determined

(1) that the movant for summary judgment has the burden of showing the trial court that there is no genuine issue of material fact and that he is entitled to judgment as a matter of law;
(2) that in deciding whether there is a disputed material fact issue precluding summary judgment, evidence favorable to the nonmovant will be taken as true; and
(3) that every reasonable inference must be indulged in favor of the nonmovant and any doubts resolved in his favor.

Nixon v. Mr. Property Management Co., 690 S.W.2d 546, 548-49 (Tex.1985); see also Sysco Food Servs., Inc. v. Trapnell, 890 S.W.2d 796, 800 (Tex.1994) (applying the Nixon standards). In reviewing a grant of summary judgment to a defendant, the relevant issue on appeal is whether the summary judgment proof establishes as a matter of law that there is no genuine issue of material fact as to one or more of the essential elements of the plaintiffs cause of action. Gibbs v. General Motors Corp., 450 S.W.2d 827, 828 (Tex.1970); White v. Liberty Eylau Sch. Dist., 880 S.W.2d 156, 157 (Tex.App.—Texarkana 1994, writ denied); Parrish v. Brooks, 856 S.W.2d 522, 524 (Tex.App.—Texarkana 1993, writ denied).

Ely first argues that the trial court erred in granting summary judgment for General Motors because there was a genuine issue of material fact as to the existence of an agency relationship between General Motors and Dow regarding the work of Darrell Durham, or alternatively, between General Motors and Darrell Durham.

*777 This Court has previously held that a “person may be the servant of two employers at one time as to one act if the service to one does not involve an abandonment of the service to the other.” White, 880 S.W.2d at 159 (citing Restatement (Second) of Agency § 226 (1958)). If General Motors and Dow jointly controlled Durham’s service, a jury could properly conclude that he was an employee or agent of General Motors when the accident occurred. See White, 880 S.W.2d at 159; Gulf Oil Corp. v. Williams, 642 S.W.2d 270, 272 (Tex.App.-Texarkana 1982, no writ).

The issue then becomes whether General Motors had the right to control Durham’s work under the warranty. Ely argues the franchise agreement between General Motors and Dow demonstrates that General Motors had the right to control significant aspects of Dow’s operations. The relevant provisions of the contract give General Motors the following rights:

• approve the location of the dealership (art. 4);
• approve the facilities of the dealership (art. 4.4);
• approve the size of the dealership (art. 4.4.3);
• require the dealership to have proper equipment (art. 4.4.5);
• require the dealership to have certain tools (art. 7.2.4);
• require adequate and trained sales personnel (art. 5.1);
• require the dealership to perform warranty work regardless from whom the vehicle was purchased (art. 5.2.1 & 7.1.2);
• require the dealership to maintain adequate service and parts organization (art. 5.2.2);
• require competent, trained service and parts managers (art. 5.2.2);
• require trained service and parts personnel (art. 5.2.2);
• set prices that dealers can charge for warranty work (art. 6 & 7);
• require dealers to stock certain parts and accessories furnished by General Motors (art. 6.4.2);
• require dealers to perform predelivery inspections (art. 7);
• require dealerships to use only General Motors or General Motors approved parts and accessories in performing warranty repairs (art. 7.2.1);
• require dealers to send employees for training with General Motors (art. 8); and
• require dealerships to maintain a certain level of working capital (art. 10).

General Motors first argues that because the franchise agreement between General Motors and Dow specifically disclaimed any agency relationship between the two parties, neither Dow nor Durham could have been an agent of General Motors. 3 The agreement stated it

does not make either party the agent or legal representative of the other for any purpose, nor does it grant either party authority to assume or create any obligation on behalf of or in the name of others. No fiduciary obligations are created by this Agreement.

General Motors argues that because agency is a contractual relationship, the contract terms by which the parties define their relationship are of utmost importance.

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Cite This Page — Counsel Stack

Bluebook (online)
927 S.W.2d 774, 1996 Tex. App. LEXIS 3301, 1996 WL 428065, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ely-v-general-motors-corp-texapp-1996.