Ruiz v. Conoco, Inc.

868 S.W.2d 752, 1993 WL 382062
CourtTexas Supreme Court
DecidedFebruary 9, 1994
DocketD-1903
StatusPublished
Cited by324 cases

This text of 868 S.W.2d 752 (Ruiz v. Conoco, Inc.) 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
Ruiz v. Conoco, Inc., 868 S.W.2d 752, 1993 WL 382062 (Tex. 1994).

Opinions

OPINION ON REHEARING

HECHT, Justice.

The motion for rehearing of Conoco, Inc. is granted, and our prior opinion is withdrawn. This is now the opinion of the Court.

This case presents four principal questions: (1) is limitations tolled on a cause of action of a person of unsound mind during the pendency of a lawsuit brought on his behalf? (2) does the involuntary dismissal of an action for want of prosecution while a motion to transfer venue to another county is pending fix venue in that other county? (3) is appellate review of a venue determination limited to whether the trial court abused its discretion in ruling on the motion to transfer, or does it extend to whether the venue issue was in fact properly decided based upon the entire record in the trial court? and (4) for a foreign corporation to be sued in a county where it has an agent or representative, must that person have broad discretionary authority to act for the corporation? The trial court held that this action is not barred by limitations, and that venue was proper in Starr County. The court of appeals affirmed as to limitations but reversed as to venue. 818 S.W.2d 118 (1991). We affirm.

I

Javier Ruiz, a resident of Hidalgo County, sustained severe and permanent head injuries in Webb County while working for Cameron Iron Works, Inc. on an oil well owned by Conoco, Inc. Ruiz and his wife filed suit in Harris County against Cameron, which immediately joined Conoco as a third-party defendant. Ruiz and his wife later sued Co-noco in Zapata County. Both suits were dismissed, the former for discovery abuse and the latter for want of prosecution. Thereafter, suit was filed in Hidalgo County for an adjudication that Ruiz was mentally incompetent, no such action having previously been filed. Ruiz was adjudged incompetent from the date of his accident, and his wife was appointed guardian of his estate and person. Ruiz then sued Conoco in Starr County through his wife as his newly appointed guardian. The present appeal arises out of this third lawsuit.

[754]*754Conoco moved for summary judgment on the grounds that the Starr County action is barred by limitations. The dates of the events just described, important to the limitations issue, are as follows:

1/24/84 Ruiz injured

1/13/86 Ruiz sued Cameron in Harris County eleven days before the expiration of two years from the date of his accident

1/26/87 Ruiz sued Conoco in Zapata County more than three years after his accident

4/21/87 Zapata County suit dismissed after it had been pending less than three months

4/29/88 Harris County suit dismissed after it had been pending more than twenty-five months

1/6/89 Ruiz adjudicated mentally incompetent from the date of his accident

9/22/89 Ruiz sued Conoco in Starr County through his newly appointed guardian

The trial court denied Conoco’s motion for summary judgment, holding that Ruiz’ legal disability tolled the running of limitations.

Conoco also moved to transfer venue of Ruiz’ action from Starr County to Harris County. Conoco is a Delaware corporation with its principal office in Harris County. In the Zapata County suit, Conoco moved to transfer venue to Harris County, and that motion remained pending when the action was dismissed for want of prosecution. Co-noco contends that the pendency of its motion to transfer at the time of dismissal fixed venue in Harris County. Conoco also contends that venue was improper in Starr County because it had no “agency or representative” there. The trial court rejected both contentions and denied Conoco’s motion.

Midway through the trial the parties reached an agreement with the trial court’s approval pursuant to which the evidence was closed, the jury was discharged, the trial court rendered judgment against Conoco for $4.5 million, and Conoco paid Ruiz’ wife, children and attorneys $450,000. Conoco did not agree to the judgment but simply did not object to its rendition, preserving its right of appeal, but agreeing to limit that appeal to two issues, limitations and venue. The parties expressly contemplated that if Conoco ultimately prevailed on either issue, the Starr County judgment would be reversed; that if it prevailed on the limitations issue, judgment would be rendered that Ruiz recover nothing; and that if Conoco prevailed on the venue issue, the case would be remanded and transferred to a district court in Harris County for further proceedings.1

The court of appeals held that Ruiz’ suit was not barred by limitations, but that venue was not proper in Starr County. Consequently, the court of appeals reversed and remanded, ordering that the case be transferred to Harris County. 818 S.W.2d 118. Both Ruiz and Conoco appeal.

II

By prescription of the applicable statute. of limitations, Ruiz’ action must be brought within two years of the date it accrued. Tex.Civ.PRAC. & Rem.Code § 16.003 (1986). Since Ruiz’ action accrued on the date of his injury, and the present action was not filed until well over five years later, the action is barred unless the running of the limitations period was tolled. Ruiz claims that the limitations period in section 16.003 was tolled by his mental incompetency according to the provisions of section 16.001 of the same subehapter, which states in pertinent part:

(a) For the purposes of this subchapter, a person is under a legal disability if the person is:
(1) younger than 18 years of age, regardless of whether the person is married; or
(2) of unsound mind.
(b) If a person entitled to bring a personal action is under a legal disability [755]*755when the cause of action accrues, the time of the disability is not included in a limitations period.

Conoco concedes that Ruiz was under a legal disability — mental incompetency — from the date of his accident, but argues that limitations should have been tolled only during periods when Ruiz did not have access to the courts to assert his rights. Specifically, Co-noco argues that limitations was not tolled while the Harris County and Zapata County suits were pending, a period exceeding two years. Thus, Conoco contends, Ruiz’ action is barred by limitations.

Texas courts have had only limited opportunities to consider the effect of the tolling provision now codified as section 16.001. Its general purpose has been stated as follows:

[T]o protect a legally disabled party who has no access to the courts, and to insure that his right to bring suit will not be precluded by the running of a limitations statute prior to the removal of his disability.

Johnson v. McLean, 630 S.W.2d 790, 793 (Tex.App.—Houston [1st Dist.] 1982, no writ) (emphasis added); see also Smith v. Erhard, 715 S.W.2d 707, 708 (Tex.App.-Austin 1986, writ ref'd n.r.e.); Adler v. Beverly Hills Hosp., 594 S.W.2d 153, 158 (Tex.Civ.App.-Dallas 1980, no writ). Conoco focuses on the “no access to the courts” language of Johnson, arguing that Ruiz did in fact have such access and therefore the purpose for tolling limitations was served. We do not construe the tolling provision so narrowly.

In

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Cite This Page — Counsel Stack

Bluebook (online)
868 S.W.2d 752, 1993 WL 382062, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ruiz-v-conoco-inc-tex-1994.