Panhandle Steel Erectors, Inc. v. Whitlow

359 S.W.2d 146, 1962 Tex. App. LEXIS 2619
CourtCourt of Appeals of Texas
DecidedMay 28, 1962
Docket7152
StatusPublished
Cited by5 cases

This text of 359 S.W.2d 146 (Panhandle Steel Erectors, Inc. v. Whitlow) 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
Panhandle Steel Erectors, Inc. v. Whitlow, 359 S.W.2d 146, 1962 Tex. App. LEXIS 2619 (Tex. Ct. App. 1962).

Opinion

CHAPMAN, Justice.

This is an appeal by Panhandle Steel Erectors, Inc., Charles M. Walker, Jerome H. Caldwell, and St. Paul Mercury Insurance Co., Inc. from the order of the trial court overruling their pleas of privilege.

All emphases shown herein are ours.

Plaintiffs below, appellees here, Dale D. (Pete) Whitlow, J. O. Parker, and Robert G. Lee, d/b/a Happy Elevator Company, are residents of Swisher County, Texas. They instituted this suit in the District Court of Swisher County against the parties above named to recover damages resulting from the failure of steel grain storage constructed by Panhandle Steel Erectors, Inc. and Walker and Caldwell. St. Paul Mercury Insurance Company, Inc., is joined as a party defendant by reason of having executed as surety for the principals, Walker and Caldwell, the contract bond in evidence in the sum of $4,200.00 conditioned they would fill all their undertakings, covenants, etc. Their undertaking was the construction of a concrete slab and foundation for grain storage tanks in Happy, Swisher County, Texas.

The principal office of Panhandle Steel Erectors, Inc., hereinafter called Steel Erectors, is in Amarillo, Potter County, Texas. C. M. Walker is a resident of Pot *148 ter County, J. H. Caldwell is a resident of Randall County, and St. Paul Mercury Insurance Company, Inc.’s principal office is in Dallas County. Except when their names are used the parties will be referred to as they were in the court below.

Plaintiffs allege a separate contract was made by them with Steel Erectors to erect on the foundation three circular steel bins 39 feet in diameter, 65 feet high, intersticed together with 3 to 4 feet between such hinds and braced properly to hold storage of grain when filled.

Plaintiffs seek to recover against all defendants except St. Paul Mercury Insurance Company, Inc. for damages for the failure of steel grain storage, alleging that Steel Erectors was negligent in furnishing defective materials for the construction of a steel grain storage elevator, in the manner of construction, and for breach of expressed and implied warranties. They allege Walker and Caldwell were negligent in failing to use anchor bolts of proper design, in failing to insert anchor bolts in the manner in which a reasonable and prudent builder would have inserted them under the same or similar circumstances, in failing to pour the foundation deeper and wider, in furnishing defective materials, and for breach of implied and/or expressed warranties. All defendants filed their pleas of privilege to be sued in the counties above shown respectively as their residences and principal places of business. Plaintiffs controverted the pleas, seeking to sustain venue in Swisher County under Subdivisions 5, 9a, 23, and 29a of Article 1995, Vernon’s Ann.Civ.St. After a hearing the trial court overruled all pleas of privilege and all defendants have appealed separately.

Because of our view of the case we deem it necessary to write only upon Subdivision 9a of Article 1995, V.A.C.S., as applied to the rights of defendants, Walker and Caldwell, and Steel Erectors.

We shall discuss together defendants, Caldwell’s and Walker’s, and defendant Steel Erectors’ contention that plaintiffs failed to discharge the burden of proving exceptions to exclusive venue under Subdivision 9a, to the effect that an act or omission of negligence occurred in the county where the suit was filed, that such act or omission was that of defendant in person, or that of his servant, agent, or representative acting within the scope of his employment and that such negligence was a proximate cause of plaintiffs’ injuries.

The contract for construction of the storage was made by plaintiffs with Mr. Mjolhus, referred to at times in the record as Mr. Milhouse and pronounced as such. Steel Erectors contend the evidence was incompetent to prove that Mjolhus was such an agent or representative of theirs as to impute to them any of his acts or omissions. To this contention we cannot agree. Pete Whitlow, one of the plaintiffs, testified as follows:

“A. Mr. Milhouse of Panhandle Steel Erectors contacted us to figure on this proposed storage.
“Q. All right.
* * * * * *
“Q. Now what did he propose or did he propose anything in the way—
“A. He proposed. He looked at the site and he proposed on this strip between the two tracks to build some upright steel tanks. They would hold anywhere around 250 to 280,000 bushels. And he said he would draw up some plans and costs and so forth and so on, and present them to us. Was our — I believe that was our first meeting.
“Q. All right. Did he draw up some plans and present them to you?
“A. Yes, sir.
“Q. Would you recognize the plans if you were to see them again?
“A. Yes, sir.
*149 “Q. I ask you, Mr. Whitlow, to look at this piece of paper and tell the Court what it represents, if that is a plan that Mr. Milhouse presented to you.
“A. This is the plan that he drew up, the proposal, and presented to us on near about August 24 or when he dated this, of this proposed plan.
“Q. What does that show, Mr. Whitlow ?
“A. Well, it shows three 39-foot diameter tanks with two interstices spaced approximately 16 foot apart. They’re circular tanks.
“Q. Does it show the interstice between the Tanks 1 and 3, and 3 and 5 ?
“A. Yes.”

Then later in the testimony Mr. Whitlow had quoted Mr. Mjolhus as saying: “Now, that’s the plan we can build.” Counsel then asked him: “Now what do you mean by ‘we’.” He replied as follows:

“A. His firm, Panhandle Steel Erectors.
“Q. He was representing Panhandle Steel Erectors, is that right?
“A. Yes. He was their representative, Mr. Milhouse.”

All this testimony came into the record without objection. Then counsel asked Mr. Whitlow if Mr. Mjolhus was a member of the firm of Panhandle Steel Erectors. Opposing counsel then objected to that line of questions “ * * * On the basis that it is an attempt here to use the ex parte declaration of agency, therefore, falling within the hearsay rule.” Plaintiffs’ counsel then called to the attention of the court that Steel Erectors had filed with the papers of the court their plea of privilege to be sued and made no objection as to whether they were not the correct party being sued. The objection was then overruled.

Additional to the testimony just stated plaintiffs notified Steel Erectors after the failure of the elevators and the company retained Mr. McMorries, a professional consulting engineer, to make the investigation. After that investigation he testified in the case for the plaintiffs.

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359 S.W.2d 146, 1962 Tex. App. LEXIS 2619, Counsel Stack Legal Research, https://law.counselstack.com/opinion/panhandle-steel-erectors-inc-v-whitlow-texapp-1962.