Jeanes v. Burke

226 S.W.2d 908, 1950 Tex. App. LEXIS 1872
CourtCourt of Appeals of Texas
DecidedJanuary 20, 1950
Docket2769
StatusPublished
Cited by1 cases

This text of 226 S.W.2d 908 (Jeanes v. Burke) 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
Jeanes v. Burke, 226 S.W.2d 908, 1950 Tex. App. LEXIS 1872 (Tex. Ct. App. 1950).

Opinion

GRISSOM, Chief Justice.

In 1923, Martha Tyler Overall created a trust estate known as the Overall Memorial Hospital at Coleman, Texas, for the benefit of the people of Coleman and Coleman County and vested the title to said hospital and its management and control in a board of trustees. . She provided that each January the conference of the M. E. Church South should appoint a board of trustees for the management of the hospital and that such board should have control and management of the hospital. The trust instrument recited that the hospital, as then established, had eight beds for persons who could not pay for medical or surgical attention and directed that no lesser number of beds for such persons be always maintained. The instrument provided that both Coleman and Coleman County could make additional improvements upon the hospital lot for the purpose of providing additional hospital facilities. She specifically provided that the trustees should respect existing contracts between her and Dr. Allison and others. He contract with Dr. Allison was to the effect that he was to be the hospital manager and the only doctor residing in Coleman County doing major surgery in said hospital for a period of five years; that, as one of the considerations for such agreement, Dr. Allison would operate indigent patients without charge and would use his best efforts in the up-building of the hospital. In connection with this agreement, Dr. Allison used a rent free office in the hospital during the life of Mrs. Overall and this custom continued with- Dr. Allison’s successor, Dr. Burke. In 19.48, Dr. Burke ceased to be manager of the hospital and began occupying rent free offices in the Morris building. During Mrs. Over *910 all’s lifetime, Dr. Allison was assisted by Dr. Burke. When Dr. Allison moved, a similar contract was entered into between the trustees, Mrs. Overall being one of them, and Dr. Burke. Dr. Burke continued with said hospital as manager and the only resident surgeon, under renewals of such contract each five years, until 1948. In the meantime, Mr. J. P. Morris furnished the funds for erecting an addition to the hospital, known as the Morris building. He planned for the first floor of said building to be used as offices for the doctors, without payment of rent, and for the second floor to be used by patients of the hospital. It was Mr. Morris’ purpose to have the doctors maintain their offices in the Morris building adjoining the hospital so that they might be more readily available for emergencies and with the idea that in such manner the hospital would be better operated and patients would receive greater benefits from the doctors.

When the Morris addition was built, all doctors in Coleman were invited to occupy rent free offices there. Most,, if not all, of the doctors in Coleman were then occupying rent free offices in the town. Most of the doctors in Coleman moved to the hospital and they, and their successors, have continued to use such offices without paying rent.

In 1948, the trustees made a contract with Dr. Burke whereby he was given the exclusive right to operate all cases of major surgery, when operated by a local surgeon. Dr. Burke agreed to aid the trustees in the management, maintenance, improvement and expansion of the hospital and in increasing its efficiency. He further agreed that he would perform, free of charge, all necessary surgical operations on persons unable to pay therefor. This contract was for five years. The contract was approved-by a unanimous vote of the board of trustees. This was substantially the same contract that had theretofore existed between the hospital and Dr. Burke, except that Dr. Burke was not thereafter to act as manager of the hospital. His office was moved from the hospital to the Morris building.' Nothing was said in the contract with Dr. Burke concerning his office.

At the execution of the contract with Dr. Burke and the other doctors hereafter mentioned, the board of trustees consisted of ten members. In January,' 1949, board members were elected, as required by the trust instrument, and six old members were re-elected and four new members were elected. When Dr. Burke ceased to be manager of the hospital, with the consent of the trustees, he moved his office out of the hospital and into the Morris building where the other doctors had their rent free offices. During the time that Dr. Burke has had a contract for exclusive surgery, so far as local doctors are concerned, he has been the only Coleman doctor with a degree in surgery, he being a Fellow of the American College of Surgeons.

In 1948, the board of trustees made a contract with Drs. Cochran, Aston, N.ichol, Young and Gaines, leasing to each of them, for a period of five years, a suite of offices in the Morris building. The consideration recited was the mutual benefit to be derived by both parties and the promise of each of said doctors to use his influence in promoting the income and popularity of the hospital and to give, free of cost, emergency medical care to employees of the City of Coleman injured while on duty for the city and “other good and valuable considerations.” The doctors who had written lease contracts for five years, being all of the plaintiffs except Dr. Burke, agreed to pay for janitor service, electricity, water, telephone and the salary of a general receptionist. They each also paid for a nurse, or secretary, in their office and furnished their equipment for the laboratory.

On February 16, 1949, the trustees notified the doctors to vacate their offices by March 15th, stating that if the doctors continued to occupy their offices the hospital would incur a tax liability.

The doctors sued the trustees. They alleged the facts substantially as heretofore stated and that said board had unlawfully undertaken to cancel its contracts with them and were threatening to oust the doctors from their offices and from their connection with the hospital and from practicing medicine and surgery therein, in disregard of *911 their contracts,, and that they would do so unless restrained. That the board had taken possession of the laboratory provided for and maintained by said doctors; that they had no adequate remedy at law; that they would be ousted from their offices and deprived of the rights granted them by their contracts and would be injured unless the board was restrained from carrying out its avowed intentions and that the doctors were being damaged by the publicity given the matter by the board. The doctors prayed for an injunction against the trustees to maintain the status quo and that, on a hearing, the trustees be enjoined from cancelling said contracts and from interfering with their occupancy of offices and their use of the laboratory and that, on final hearing, said contracts be declared binding and the injunction made perpetual.

The trustees excepted to the doctors’ petition because it appeared on its face that plaintiffs were not entitled to an injunction and because said contracts were void (a) because they were against public policy; (b) because they were unilateral .and without adequate consideration; (c) because the trustees did not have authority to make said contracts and (d) because said contracts were unconscionable. Defendants further excepted, insofar as F. M. Burke was concerned, because his contract attempted to create a monopoly for the practice of surgery. Defendants filed a general denial. They specially denied the authority of the trustees to execute the contracts.

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

Related

Untitled Texas Attorney General Opinion
Texas Attorney General Reports, 1971

Cite This Page — Counsel Stack

Bluebook (online)
226 S.W.2d 908, 1950 Tex. App. LEXIS 1872, Counsel Stack Legal Research, https://law.counselstack.com/opinion/jeanes-v-burke-texapp-1950.