Gulf, Colorado & Santa Fe Railway Co. v. Huyett

92 S.W. 454, 99 Tex. 630, 1906 Tex. LEXIS 151
CourtTexas Supreme Court
DecidedApril 18, 1906
DocketNo. 1544.
StatusPublished
Cited by32 cases

This text of 92 S.W. 454 (Gulf, Colorado & Santa Fe Railway Co. v. Huyett) is published on Counsel Stack Legal Research, covering Texas Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Gulf, Colorado & Santa Fe Railway Co. v. Huyett, 92 S.W. 454, 99 Tex. 630, 1906 Tex. LEXIS 151 (Tex. 1906).

Opinion

WILLIAMS, Associate Justice.

The defendant in error, who had received personal injuries while in the service of plaintiff in error, in consideration of the payment by the latter of the sum of $250, executed to it a release of all damages thus sustained. He subsequently brought this suit to recover such damages, wherein he sought to avoid the release on the ground that it was obtained by a misrepresentation made to him by one of the surgeons of the railroad company, engaged in treating him in its hospital, as to the nature and extent of his injuries and as to his recovery therefrom. His version of the transaction is that on Friday, October 16, 1903, he had an interview with defendant’s claim agent concerning a settlement, in which he proposed to settle for $2,000, and the claim agent declined to consider his proposition; that on the next day Dr. Scott, one of the surgeons in charge of the hospital, when visiting it, requested him to “stand in front of him,” and, Avhen he did so, said to him, “Huyett, you are not damaged, you will soon be as good a man as ever; you will soon be able to go to work;” that, believing this statement to be true, and being induced by it, on the folloAving Monday he renewed his negotiation with the claim agent and settled with him for $250. It is conceded by Dr. Scott, and shoivn by all the evidence, that the statement thus attributed to him, if made, Avas untrue, and did not fairly represent plaintiff’s condition; but Dr. Scott explicitly denies having made it. There is no evidence that the doctor knew of the interviews between plaintiff and the claim agent or that a settlement was then being discussed between them, nor is there any evidence that the claim agent knew of the statement made by the doctor to the plaintiff, or that the doctor in any way acted with Eim in procuring or for the purpose of procuring a settlement. It may be conceded that the evidence sufficiently shows that Dr. Scott was an *634 agent of the defendant in rendering services as physician and surgeon to its injured employes at the hospital and that it lay within the scope of his employment not only to treat them but to advise them concerning the nature and duration of their injuries and the probability of their recovery. It appears, also, to have been, a part of his duty to give information on these subjects to the defendant’s employes in its claim department. But, beyond this, he had no connection with that department and nothing to do with making settlements and obtaining releases or in conducting negotiations therefor. The representation relied on to avoid the release, therefore, does not appear to have been made in the transaction in which the contract of settlement was made, nor by the agent authorized to represent the defendant therein, but, so far as the evidence indicates, it was disconnected from that contract and made by an agent whose duties, as agent, had no relation to such matters. The law upon the subject is thus laid down by Judge Story in his work on Agency, section 135, whose statement is supported by many ■ decisions: “. . . If the agent, at the time of the contract, makes any representation, declaration, or admission, touching the matter of the contract, it is treated as the representation, declaration, or admission of the principal himself. But the qualifications above stated are also most important to be attended to. The representation, declaration, or admission of the agent, does not bind the principal, if it is not made at the very time of the contract, but -upon another occasion; or if it does not concern the subject matter of the contract, but some other matter, in no degree belonging to the res gestae.”

In section IS1?1, the principle is thus illustrated: “Thus, for example, what an agent has said, or represented, at the time of the sale of a horse, which sale was authorized by his master, whether it be a representation or a warranty of soundness, or of any other quality, will be binding upon the master. But, what he has said upon the subject at another time, or upon another occasion, will not be binding upon him; for it is no part of the res gestae; and did not attach, as an incident or inducement to the sale. For such purposes the agent is no longer acting as agent of the master; and his declarations are not to be used as proofs against the master; but the facts contained in those declarations must be proved aliunde. Indeed, in such cases, the agent himself may be properly called as a witness, and, hence, it has been said that his declarations are not the best evidence of the facts.”

According to this, if the representation relied on had been made by the agent who effected the settlement, but in a different transaction, it could not affect the rights of the principal under the contract. For a stronger reason is this true of a representation made, not only in a different transaction, but by another agent having no authority in relation to, or connection with the settlement. His statements have only the relation to the contract of settlement that those of a stranger would have, for the reason that in making them he did not represent the defendant with respect to the settlement. Thompson on Corporations, section 6324; American Nat. Bank v. Cruger, 91 Texas, 451.

The mere fact, therefore, that he was an agent of the defendant for *635 some purposes does not make his representation available as a reason.for avoiding a contract which he did not make. It is true that if he, assuming to act for defendant, had procured the release, whether authorized to do so or not, and the defendant were seeking to avail itself of it as a defense, any fraud practiced by him in obtaining it would be imputed to.- defendant. But a contract complete in all respects was made by defendant through its other agent, and hence the principle laid down in Henderson v. Railroad Company, 17 Texas, 560, is not applicable, for the reason that the representation of an agent not shown to have had connection with that contract can not be used to defeat it.

It is also true that, if it were shown that defendant or its claim agent used the physician as an instrument to deceive plaintiff as to his condition in order that an advantageous settlement might be made, or that the claim agent and the physician acted together in so procuring the release, the contract would be affected by the physician’s representations as fully as if he had been the only agent employed in the transaction (International & G. N. Ry. Co. v. Shuford, 81 S. W. Rep., 1189); and it may be that if the claim agent in effecting the settlement knew and took advantage of the state of plaintiff’s mind, caused by deception practiced by the doctor, the result would be the same. But such things as this must be proved and can not be supplied by conjecture or suspicion.

If plaintiff’s statement be accepted, that Dr. Scott made the statement, which all concede would have been a glaring misrepresentation of the character of plaintiffs injuries and of his condition, the question as to why he did so would naturally arise in one’s mind and might suggest suspicion as to his purposes; but this is not sufficient to warrant the finding of the facts, of which there is no other evidence, that he was employed by defendant or its other agent to make the representation or that they knew that he had done so. Some matters in the record are relied on by the defendant in error to establish these facts, such as that Dr.

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92 S.W. 454, 99 Tex. 630, 1906 Tex. LEXIS 151, Counsel Stack Legal Research, https://law.counselstack.com/opinion/gulf-colorado-santa-fe-railway-co-v-huyett-tex-1906.