Farmers' Petroleum Co. v. Shelton

202 S.W. 194, 1918 Tex. App. LEXIS 258
CourtCourt of Appeals of Texas
DecidedMarch 11, 1918
DocketNo. 331.
StatusPublished
Cited by12 cases

This text of 202 S.W. 194 (Farmers' Petroleum Co. v. Shelton) 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
Farmers' Petroleum Co. v. Shelton, 202 S.W. 194, 1918 Tex. App. LEXIS 258 (Tex. Ct. App. 1918).

Opinion

BROOKE, J.

January 13, 1915, appellee, Shelton, an employé of the Farmers’ Petroleum Company, had his right arm badly injured while engaged in assisting in “making up” some pipe at well No. 4, which was then being drilled by the company in their Humble field. At the time the Farmers’ Petroleum Company was the holder of a policy in the Texas Employers’ Insurance Association, providing for the payment of compensation to its employés under the provisions of the Texas Employers’ Liability Act, 33d Leg. c. 179, arid was a “subscriber,” under the terms of the act. After the accident, and prior to the institution of this suit, namely, on November 7, 1915, the Farmers’ Petroleum Company was, by action of its stockholders, voluntarily dissolved, T. P. Lee being its president and one of its directors, and J. S. Cul-linan, James L. Autry, Will C. Hogg, and E. F. Woodward being its other directors at the time.

Upon the contention that the provisions of the Employers’ Liability Act were inoper *195 ative as to him, because he had never been given the notice provided for in section 19, pt. 3, of the act (Vernon’s Sayles’ Ann. Civ. St. 1914, art. 5246x), and ignoring the act, appellee instituted this suit at common law for damages for the personal injuries sustained by him against the dissolved corporation, the Farmers’ Petroleum Company, and against the Republic Production Company, and also against the said Lee, Cullinan, Autry, Hogg, and Woodward, individually, alleging that the Republic Production Company had acquired all of the assets of the Farmers’ Petroleum Company, and had assumed all of its liabilities; or, if this were not true, that the said Lee, Cullinan, Autry, Hogg, and Woodward had each received, in money or other property, from the Republic Production Company, in consideration of the transfer to it of the assets of the Farmers’ Petroleum Company, or that each received assets of the Farmers’ Petroleum Company in excess of appellee’s claim.

By trial amendment appellee urged specific acts of negligence, and that his said injuries were the direct and proximate result of the carelessness and negligence of his said foreman, the said defendants’ vice principal, setting out the specific acts.

Appellants answered with plea in abatement, suggesting the dissolution of the Farmers’ Petroleum Company, and that Lee, Cullinan, Autry, Hogg, and Woodward, the surviving directors, were not sued in their capacity as trustees for the creditors and stockholders, and general and special demurrers, and plea in bar that, at the time of the receipt of the alleged injury, appellee was in the employment of the Farmers’ Petroleum Company, who was a “subscriber” within the provisions of the Texas Employers’ Liability Act, having provided for compensation to its injured employes by insuring with the Texas Employers’ Insurance Association, of which fact appellee had notice in writing and in print, as provided in the act; that no claim for compensation had been made by appellee, and that no question arising under the act between the interested parties had been determined by the Industrial Accident Board; also by general denial, plea of assumed risk of a known danger, and plea of contributory negligence.

The case was tried by a jury in the Harris county district court upon special issues, and upon the answers of the jury judgment was rendered, dismissing appellee’s suit as to the Republic Production Company, and in favor of appellee against the defunct Petroleum Company, and against Lee, Cullinan, Autry, Hogg, and Woodward as individuals, jointly and severally, for $15,000, and for the same amount against the same parties as representatives of the dissolved corporation. The appeal has been perfected to this court by supersedeas bond.

The first assignment of error is as follows:

“The court erred in refusing to direct a verdict for these defendants as requested by them in their special charge No. 2, because the evidence was undisputed that, at the time of the receipt by the plaintiff of the injuries complained of by him herein, he was in the employment of the Farmers’ Petroleum Company; that said Farmers’ Petroleum Company, while the plaintiff was an employé, became a subscriber to the Texas Employers’ Liability Act, c. 179, General Laws of the Thirty-Third Legislature and amendments thereto, by insuring with the Texas Employers’ Insurance Association of Dallas, Texas; that it had given notice to its em-ployés of the fact that it was such a subscriber, in the manner provided by the order and rules of the Industrial Accident Board.”

Several propositions are urged under this assignment, as follows:

(a) “The act is not rendered inoperative as to employés of a subscriber because of the latter’s failure to give the notice prescribed in section 19, part III, of the act of 1913.”
(b) “A clause of a statute is directory when the provision contains mere matters of direction and no more, but not so when it is followed by words of positive prohibition.”
(c) “Section 19, part III, Texas Employers’ Liability Act of 1913, providing, ‘Every subscriber shall, as soon as he secures a policy, give notice, in writing or print, to all persons under contract of hire with him, that he has provided for payment of compensation for injuries with the association,’ not being followed by words of prohibition, is directory only, not mandatory.”
(d) “Appellee had actual knowledge that his employer had provided for payment of compensation for injuries with the association.”

Two counter propositions are urged, as follows:

(a) “To defeat appellee’s common-law action by the provisions of the Employers’ Liability Act, it was essentially necessary that the Farmers’ Petroleum Company should have given him notice, in writing or print, that it had become a ‘subscriber’ to such act, or to show that he had actual notice of such fact.”
(b) “The defense urged by appellants under first assignment of error is available to appellants Cullinan, Autrey, Lee, Hogg, and Woodward only as made through the Farmers’ Petroleum Company, or themselves as stockholders and managing directors of said corporation, and such defendants against whom judgment was rendered not having filed a motion for new trial or assignments of error, because of which' failure the judgment as against such defendants is entitled to be affirmed upon the record, and cannot avail the individual defendants upon this appeal, even though the assignment announced a correct proposition of law.”

[1] Not only has the entire act been passed upon by the Supreme Court of this state, but section 19, pt. 3, of the act of 1913, has been passed upon by two of our courts' of Civil Appeals, to wit, that of San Antonio and Amarillo, each of which held that the act is rendered inoperative as to employés of a “subscriber” because of the latter’s failure to give the notice prescribed in section 19, pt. 3, of the act of 1913. Having carefully read the opinions in the cases of Kampmann v. Cross, 194 S. W. 439, and Rice v. Garrett, 194 S. W. 668, we are firmly convinced that the position taken by the said courts with reference to section 19, pt. 3, of the act of 1913, is correct, and, quoting from the case of Kampmann v. Cross, we are of opinion that the

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Bluebook (online)
202 S.W. 194, 1918 Tex. App. LEXIS 258, Counsel Stack Legal Research, https://law.counselstack.com/opinion/farmers-petroleum-co-v-shelton-texapp-1918.