Pecos & Northern Texas Railway Co. v. Cox

157 S.W. 745, 106 Tex. 74, 1913 Tex. LEXIS 83
CourtTexas Supreme Court
DecidedJune 4, 1913
DocketNo. 2550.
StatusPublished
Cited by16 cases

This text of 157 S.W. 745 (Pecos & Northern Texas Railway Co. v. Cox) 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
Pecos & Northern Texas Railway Co. v. Cox, 157 S.W. 745, 106 Tex. 74, 1913 Tex. LEXIS 83 (Tex. 1913).

Opinion

Mr. Chief Justice BBOWN

delivered the opinion of the court.

The defendant in error having filed an answer to the application for writ of error, and this court having decided to grant the writ of error, we will finally dispose of the case.

C. B. Cox sued the Pecos & Northern Texas Bailway Company and the Southern Kansas Bailway Company of Texas, both incorporated under the laws of this State and operated within the State, also the Atchison, Topeka & Santa Fe Bailway Company, incorporated in Kansas and operated outside of this State but running trains to Amarillo, Texas.

The object of the suit was to recover damages to cattle shipped from Plainview, in Hale County, Texas, to different points in Kansas and to Kansas City, Missouri, for which through bills of lading were issued by the Pecos & Northern Texas Bailway Company, the cattle to be conveyed and transported over each of the three railroads named to their several destinations.

It is alleged in substance that in fact the three corporations constitute one company and constitute an "entirety” with their principal offices in the City of Amarillo, Potter County, Texas. It is also alleged that the said corporations constitute a partnership in the operation of the different railroads.

Service was had upon the Texas corporations, which answered, each of which denied the partnership under oath. Service was made on T. W. White at Amarillo, Texas, as the agent of the Atchison, Topeka & Santa Fe Bailway Company. White, as amicus curiae, filed an affidavit that he was not the agent of the Santa Fe Bailway Company, and that company did not answer nor make any kind of appearance. The District Court took no steps to ascertain whether or not White was the agent of the Santa Fe Company, but submitted the case against it as if it had been served. The jury returned a jo,int verdict against all of the defendants. The defendants prosecuted an appeal to the Court of Civil Appeals of the Fourth District which affirmed the judgment.

It is not claimed that there was any evidence tending to prove that White was agent of the Santa Fe Company, therefore the service on him did not give the State court jurisdiction of the foreign corporation. Such service, if upon an agent, must be made upon someone authorized *77 to represent the corporation in the transaction of its business done or to be done in the State.' Peterson v. Chicago, Rock Island & Pacific Ry. Co., 205 TJ. S., 364, 27 Sup. Ct., 513, 51 L. Ed., 841; Green v. Chicago & Burlington Ry. Co., 205 U. S., 531, 27 Sup. Ct., 595, 51 L. Ed., 916. Upon facts much more significant than in this cáse it was held in the first case cited that the service upon one engaged in transacting business which finally reached that company was not sufficient.

Before proceeding against the Santa Fe Company the District Court should have required proof of White’s agency. There was no presumption of such agency. Galveston, H. & S. A. Ry. Co. v. Gage, 63 Texas, 568; Jones v. City of Jefferson, 66 Texas, 576, 1 S. W., 903. In the Gage case the. court said: “And we are of the opinion that in all cases in which service is made on a person represented to be the agent of a corporation, the return should not be held conclusive of the fact that the person served was in fact the local agent, and that this fact may •be put in issue by a sworn plea.”

The plaintiff’s petition charged that the three railroad companies formed a co-partnership, therefore claimed that judgment should he entered against all.

The Southern Kansas Railway Company of Texas having filed a plea under oath, denying the partnership, and there being no proof of the partnership, the issue should not have been submitted to the jury; but the form of the verdict shows that the finding was not on the issue of partnership, but- that the three roads constituted an “entirety,” hence the error of submitting the issue of partnership is immaterial. The judgment can not be sustained against the Santa Fe Company unless the claim that the. three roads were consolidated into one line of road was proved, therefore service on one was effective as to all.

The Honorable Court of Civil Appeals made no statement of the facts which established the consolidation of the lines. The attorneys for defendant in error have given no aid on this point and we have been left to wade 'through a tangled, and often incoherent, mass of statements for evidence upon this very important point.

. The charge of the court as to joint liability of all defendants reads: “If you find for the plaintiff, and further find that the defendants, the Atchison, Topeka & Santa Fe Railway Company, the Southern Kansas Railway Company of Texas and the Pecos & Northern Texas Railway Company, are an entirety and constitute but a single line of railway and that the parts of said line of railway extending from Higgins to Amarillo and the part extending from 'Amarillo to Plain view are operated by the Atchison, Topeka & Santa Fe Railway Company and are but sub-corporations and agents of the Atchison, Topeka & Santa Fe Railway Company, then the form of your verdict will be: ‘We, the jury, find for the plaintiff against the defendants, the Atchison, Topeka & Santa Fe Railway Company, the Southern Kansas Railway Company of Texas, and the Pecos & Northern Texas Railway. Company in the sum of $5509.56, and apportion the same as follows:’ ” The jury returned the following verdict: “We, the jury, find for the plaintiff against the *78 defendants, the Atchison, Topeka & Santa Pe Railway Company, the Southern Kansas Railway Company of Texas, and the Pecos & Northern Texas Railway Company in the sum of $5509.56, and apportion the same as follows: $1646.10 on account of the cattle shipped to Kansas City, $1040 on account of the cattle shipped to Toronto, $2735.46 on account of the cattle shipped to Hamilton, and $88 on account of the cattle shipped to Higgins.”

Assuming that in using the word “entirety” the judge intended to submit the issue of the common ownership or joint operation’ of all three lines, as one, or that the Santa Pe owned or operated the other two, the evidence is not sufficient to establish such relation between the companies. The evidence shows that the Santa Pe ran trains to Amarillo, in Texas, and that cars loaded at Plainview were carried to Higgins by the other companies and thence by the Santa Pe to points on its line in other States, but these facts do not tend to establish joint ownership of all of the lines or the ownership or control of the lines-.in Texas by the Santa Pe. Peterson v. Chicago, R. I. & P. Ry. Co., 205 U. S., 364, 27 Sup. Ct., 513, 51 L. Ed., 841. The case cited was based upon much stronger facts than the case under consideration. The Honorable Court of Civil Appeals rested its decision upon a case decided by this court, Buie v. Chicago, R. I. & P. C. Ry. Co., 95 Texas, 51, 65 S. W., 27, 55 L. R. A., 861. That case was decided upon practically the same facts as the Peterson case. The Supreme Court of the United States did not mention the Buie case in the Peterson case, but the effect of the decision in the latter case is to overrule the other.

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Bluebook (online)
157 S.W. 745, 106 Tex. 74, 1913 Tex. LEXIS 83, Counsel Stack Legal Research, https://law.counselstack.com/opinion/pecos-northern-texas-railway-co-v-cox-tex-1913.