Southern Traffic Bureau v. Thompson

232 S.W.2d 742, 1950 Tex. App. LEXIS 2323
CourtCourt of Appeals of Texas
DecidedJune 21, 1950
Docket12109
StatusPublished
Cited by34 cases

This text of 232 S.W.2d 742 (Southern Traffic Bureau v. Thompson) 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
Southern Traffic Bureau v. Thompson, 232 S.W.2d 742, 1950 Tex. App. LEXIS 2323 (Tex. Ct. App. 1950).

Opinions

NORVELL, Justice.

This suit involves the legality and validity of a method of operation adopted' by Southern Traffic Bureau in presenting and prosecuting claims against rail .carriers. A cross appeal is involved,-but for convenience we will refer to Southern Traffic Bureau as the appellant and Guy A. Thompson as appellee. - Thompson is the trustee for a group of railroads known as the Missouri. Pacific Lines, - appointed in accordance with Section 77 of the Bank [744]*744ruptcy Act, 11 U.S.C.A. § 205. He filed: this suit in behalf of certain carriers and later intervened on behalf of others. The distinction between plaintiffs and inter-veners is not pertinent here. The Texas and New Orleans Railroad Company also intervened, but its asserted cause of action was severed from the present suit and it is not a party to this appeal. The Southern Traffic Bureau, defendant belovv, is a partnership composed of W. M. White, W. M. White, Jr., and other members of the White family, and is engaged in the business of preparing and- presenting claims against rail carriers arising out of delays in transit, breakage of containers, failure to carry out shipping instructions and similar matters relating to the shipment of fruit and vegetables. The appellee contended that the bureau’s operations are violative of the law' against barratry, Article 430, Vernon’s Ann.Penal Code, and that it unlawfully engages in the practice of law.

Trial below was to the court without a jury. Upon request findings of fact and conclusions of law were prepared and filed. The judgment in the main was favorable to appellee. A perpetual injunction was granted, restraining the bureau from soliciting claims against appellee and from doing other specified acts set out in seven numbered paragraphs of the decree. The court also granted further relief by way of a declaratory judgment. Article 2524 — 1, Vernon’s Ann.Civ.Stats. This portion of the judgment consists Of eleven paragraphs lettered a to k, inclusive. ’

Appellant submits 64 points of error and the appellee presents two cross-points. It is obviously impossible to discuss all of these points seriatim and keep this opinion within reasonable bounds. We believe, however, that the issues of the case naturally divide themselves into certain grand divisions which may be expeditiously discussed- and disposed of.

The injunctive portion of the decree provided that, “Southern Traffic Bureau and W. M. White, Sr., W. M. White, Jr., Cecil White, Bernice White and Jack White, their agents, servants and employees be,' and they are hereby perpetually enjoined:

“(1). From in any manner soliciting employment to present, prosecute, settle, collect, adjust or compromise any claim <\r claims (other than freight rate claims) against Plaintiff or Intervener in which they have no interest, for their own profit, and from procuring others to solicit such employment for them.

“(2) From examining the files or records of any person, firm, association or corporation for the purpose of ascertaining or determining whether such files or records disclose a claim (other than freight rate claims) against Plaintiff or Intervener which is cognizable at law.

“(3) From advising any person, firm, association or corporation that they have a claim (other than freight rate claims) against Plaintiff or Intervener or such' a claim which the Courts will enforce.

“(4) From filing any claim (other than freight rate claims) against Plaintiff or Intervener, on behalf of any other person, firm, association or corporation, either in Court or with Plaintiff or Intervener or any servant, agent, employee or other representative of Plaintiff or Intervener.

“(5) From representing any other person, , firm, association or corporation in the prosecution of a claim (other than freight rate claims) against plaintiff or Intervener and from representing any other person, firm, association or corporation in any effort or attempt to collect any claim (other than freight rate claims) from Plaintiff or Intervener, or attempting to settle, adjust or compromise any such claim.

“(6) From advising any person, firm, association or corporation asserting a claim against Plaintiff or Intervener as to whether the same should be settled, adjusted or compromised and from advising such claimant whether a suit should be filed in Court on such claim if it be rejected by Plaintiff or Intervener or not compromised, adjusted or settled by them.

“(7) From threatening, on behalf of any other -persons, firm, association or corporation, to file suit against ■ Plaintiff or In-tervener, in the event any claim filed by or on behalf of such person, firm, associa[745]*745tion or corporation is not paid, adjusted settled or compromised.”

The obvious basis of the first numbered paragraph of the injunctive portion of the decree is the barratry statute, Art. 430, P. C., which in part provides that: “Whoever shall, for his own profit or with the intent to distress or harass the defendant therein, wilfully instigate, maintain, excite, prosecute or encourage the bringing, in any court of this State, of a suit at law or equity in which he has no interest; * * * or shall willfully instigate, maintain, ■ excite, prosecute or encourage the bringing or prosecution of any claim in which he has no interest, for his own profit or with the intent to distress' or harass the person against whom such claim is brought or prosecuted; or shall seek to obtain employment in any claim to prosecute, defend or collect the • same by means of personal solicitation of such employment,, or by procuring another to solicit for him employment in such claim; * * * shall be fined not to exceed five hundred dollars, and may in addition thereto be imprisoned in jail not exceeding three months. The penalties herein prescribed shall apply not only to attorneys at law, but to any other person who may be guilty of any pf. the things set forth in this article. * ' * * ”

In the case of McCloskey v. San Antonio Public Service Co., Tex.Civ.App., 51 S.W.2d 1088, this Court held that when the property rights of an individual or corporation were threatened by the solicitation and prosecution Of claims against it in contravention of the barratry law, an injunction would lie to restrain such action. It was held that while, as a general rule, an injunction does not lie to restrain the violation of a penal statute, there is a well recognized exception to the rule. Whenever the commission of acts denounced as wrongful by the penal code results in the invasion of the property rights of another, the injured person may protect himself by injunction. See also, Ex parte Hughes, 133 Tex. 505, 129 S.W.2d 270; Ex parte Allison, 48 Tex.Cr.R. 634, 90 S.W. 492, 13 Ann.Cas. 684, 3 L.R.A.N.S., 622; Ramon v. Saenz, Tex.Civ.App., 122 S.W. 928; Featherstone v. Independent Service Station Ass’n of Texas, Tex.Civ.App., 10 S.W.2d 124. The holding in the McCloskey case was approved by the Supreme Court, -as evidenced by its outright -refusal of a writ of error.

The trial court in effect found that appellant had in the past and would in the future, unless restrained, solicit claims against the appellee. These findings fully support the first paragraph of the restraining portion of the decree above quoted. Appellant however asserts that these findings are not supported by the evidence. .There was direct evidence of the solicitation of business.

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Bluebook (online)
232 S.W.2d 742, 1950 Tex. App. LEXIS 2323, Counsel Stack Legal Research, https://law.counselstack.com/opinion/southern-traffic-bureau-v-thompson-texapp-1950.