Millers' Indemnity Underwriters v. Patten

238 S.W. 240, 1922 Tex. App. LEXIS 399
CourtCourt of Appeals of Texas
DecidedFebruary 8, 1922
DocketNo. 1892. [fn*]
StatusPublished
Cited by37 cases

This text of 238 S.W. 240 (Millers' Indemnity Underwriters v. Patten) 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
Millers' Indemnity Underwriters v. Patten, 238 S.W. 240, 1922 Tex. App. LEXIS 399 (Tex. Ct. App. 1922).

Opinion

BOYCE, J.

The appellant, Millers’ Indemnity Underwriters, brought this suit against appellees, Maggie May Patten and her minor children, to set aside an award of the Industrial Accident Board, which granted the appellees compensation under the Workmen’s Compensation Law (Vernon’s Ann. Civ. St. Supp. 1918, arts. 5246 — 1 to 5246 — 91) for the death of W IT. Patten, the husband and father of appellees.

W. H„ Patten was killed while operating some of the machinery in a cotton gin at Brice, Tex. The Memphis Cotton Oil Company, a corporation, held the legal title to the gin at such time, and had a policy writ *241 ten by the appellant providing compensation insurance for its employees under the provisions of the Workmen’s Compensation Law. The award of compensation was based on allegations that W. H. Patten was an employee of the Memphis Cotton Oil Company within the meaning of said law. The appellant denied that he was an employee of the oil company, and specially pleaded that he was a part owner of the said Brice gin, and in partnership with the oil company in the operation thereof. The only issue submitted to the jury was as to whether W. H. Patten was a “partner of the Memphis Cotton Oil Company in the operation of the Brice gin at the time of the accident which caused his death.” The jury answered this issue in the negative.

The principal questions raised on appeal center around the submission of the issue of partnership. Appellant contends, under the first two propositions presented, that the trial court should have directed a verdict in its favor on the theory that the evidence conclusively established a partnership between Patten and the oil company. Its fourth proposition attacks the finding of the jury on the issue of partnership, and the fifth proposition complains of the trial court’s definition of partnership. The appel-lee’s counter propositions are: (1) That there was no consummated partnership, because the agreement, if any, for partnership contemplated the conveyance to Patten of an interest in real property and the agreement was not expressed in' writing and no conveyance actually made; (2) that there would be no partnership because the oil company was a corporation without the power to form a partnership; (S) that the agreement, if any was made, was only to share profits, and .created no partnership; (4) that there was sufiieieht conflict in the evidence as to present an issue for decision by the jury as to the real nature of the agreement between the deceased and the oil company. We make the following statement of the facts to be considered in the disposition of these propositions:

The Brice gin was located in the vicinity of Memphis, Tex., and consisted of seven acres of land, on which was located a'cotton gin, also a dwelling, used for the residence >of the manager of the' gin, and perhaps some other improvements. Prior to July, 1919, it was owned and operated by the Brice Gin Company, a corporation. In the early part of July, 1919, W. H. Patten had some negotiations with the owners of this gin for the purchase thereof, and' at this time had some conversation with E. U. Foxhall, president of the Memphis ’ Cotton Oil Company, in reference to securing Foxhall’s financial aid in the purchase of said property. Nothing definite was agreed on, but Foxhall stated that he would investigate the matter and communicate with Patten later. During the latter part of the month Foxhall bought the gin for the Memphis Cotton Oil' Company, and the property was conveyed to said corporation. He informed Patten by letter of the negotiations, and later of its purchase by the oil company, stating in the letters that “We are depending on you to run the gin this season,” and that “We would like to sell you an interest and have you run it,” and finally urging Patten “to come on up as we will make deal with you, either to sell an interest or to run- the plant for us.” To these letters Patten replied, asking for a proposition from the oil company, and stating that the Brice Gin Company had offered him $150 per month to run the gin. As to purchasing an interest in the gin he said:

“As to buying an interest would not be able to make a decent payment. If you people could arrange to carry me we might make some kind of arrangements to pay you.”

On August 1 the Memphis Cotton Oil Company replied to Patten’s .letter, saying:

“We would like very much to sell you a one-third interest in the plant for $2,200, payable in notes on reasonable time and you could draw reasonable salary by the year, * * * ana wish you would wire us on receipt of this let-' ter whether or not you will come up at once and go over everything on basis about as stated.”

Patten went to Memphis soon after receipt of this letter, and Foxhall testifies that he, acting for the Memphis Cotton Oil Company, and Patten thereupon made an oral agreement, by the terms of which Patten was to buy a one-third interest in the gin for $2,200, for which he was to give his notes, and the net profits of such one-third interest in the gin were to be applied in payment thereof, and that the notes were only to be paid out of the profits in this way; that it was also agreed that Patten was to run the gin and receive -a salary of $100 per month, payable out of the business; that Patten took charge of the gin in pursuance to this agreement about August 16, 1919, moved his family into the residence on the property, employed labor, and ordered machinery for repair of the gin, and began operating it; that payment of the expenses thus incurred was made by drafts drawn in the name of the Brice Gin Company, which the Memphis Cotton' Oil Company paid, and charged to an account carried on its books with the Brice Gin Company.

Foxhall further testified that he had no specific authority from the board of directors of the oil company to buy or sell the Brice gin, but that the directors “always accepted what he did”; that after his verbal agreement with Patten he had prepared a resolution of the board of directors authorizing a sale to Patten. The Board of Directors consisted of five members. Foxhall, the *242 president, resided at Memphis, at which place was located the principal office of the company. Two of the directors, one being the secretary and the other the principal stockholder in the company, resided at Abilene, Tes. There was no regular meeting of the board of directors for the purpose of considering this matter. Poxhall sent the resolution to the secretary, and when it was approved by the secretary and the other director, who resided at Abilene, “that was considered a meeting of the board of directors,” and the resolution was certified to by the president and secretary as having been passed at a regular meeting of the board of directors held in Memphis, Tex. A deed was then also prepared, dated September 29, 1919, by the terms of which the Oil Company conveyed to Patten, for the consideration of $2,200, a one-third interest in the Brice gin; this deed retained a vendor’s lien to secure payment of the notes for $2,200; these notes were also prepared for execution by Patten, and were in the form of absolute obligations to pay. The deed was acknowledged by Poxhall, who testifies that he notified Patten over the phone that the papers were ready for execution and delivery, and that Patten answered that he would be in Memphis soon and close the matter up, and that the transaction was in this condition when Patten was killed on October 16, 1919.

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238 S.W. 240, 1922 Tex. App. LEXIS 399, Counsel Stack Legal Research, https://law.counselstack.com/opinion/millers-indemnity-underwriters-v-patten-texapp-1922.