Southline Equipment Co. v. National Marine Service Inc.

598 S.W.2d 340, 1980 Tex. App. LEXIS 3235
CourtCourt of Appeals of Texas
DecidedMarch 26, 1980
DocketB2313
StatusPublished
Cited by18 cases

This text of 598 S.W.2d 340 (Southline Equipment Co. v. National Marine Service Inc.) 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
Southline Equipment Co. v. National Marine Service Inc., 598 S.W.2d 340, 1980 Tex. App. LEXIS 3235 (Tex. Ct. App. 1980).

Opinion

JUNELL, Justice.

National Marine Service Incorporated (National) sued Southline Equipment Co. (Southline) on a sworn account to recover the amount claimed due for material and services rendered in repairing a forklift machine. Two of Southline’s employees had solicited National to repair, and ultimately *342 replace, the engine in the machine. South-line filed a sworn denial of authority of its agents to bind the company for such repairs. After a trial to the court, judgment was rendered that National recover from Southline the sum of $4,099.80 plus prejudgment interest at the rate of 9% and attorney’s fees. Southline appeals claiming no evidence and, alternatively, insufficient evidence to support the judgment, that appel-lee’s pleadings were insufficient to support the court’s findings, and that the award of 9% prejudgment interest is excessive. We overrule appellant’s evidence and pleading points and sustain the point attacking the excessive interest award.

In considering appellant’s no evidence points, this court must consider only the evidence and the inferences tending to support the trial court’s findings and disregard all evidence and inferences to the contrary. Garza v. Alviar, 395 S.W.2d 821 (Tex.1965). The trial court made the finding that Southline, a corporation, contracted with National, a corporation, for the repair of the machine located on Southline’s premises and that it agreed to pay National the reasonable cost of the parts and labor. Because a corporation can only act through its agents, implicit in the court’s finding is the fact that Southline’s agents or employees were authorized to bind their employer for such an expense. Thus, this court must look only to that evidence supporting the finding of authority. The question turns on the authority, or lack thereof, of the two employees of Southline in July, 1973, to contract for the repairs done and thus bind their employer for payment.

Plaintiff-appellee’s original petition alleges that “ . . .at the special instance and request of the said defendant, plaintiff furnished the defendant labor and material of the reasonable value of $4,214.87. . . ” Appellant did not specially except to the pleadings; it merely questioned the authority of its agents to so bind the company.

For appellee to recover on any theory of apparent authority of appellant’s agents, the general rule requires that such apparent authority, or estoppel, be specifically pleaded and proved. Minneapolis-Moline Company v. Purser, 361 S.W.2d 239 (Tex.Civ.App. — Dallas 1962, writ ref’d n. r. e.). However, appellant’s failure to specially except to appellee’s petition acts as a waiver of any defect for purposes of appellate review. Tex.R.Civ.P. 90; Swinford v. Allied Finance Company of Casa View, 424 S.W.2d 298 (Tex.Civ.App. — Dallas 1968, writ dism’d), cert. den., 393 U.S. 923, 89 S.Ct. 253, 21 L.Ed.2d 259. Absent any special exception to the pleadings, appellee was entitled to prove any type of authority of appellant’s agents to support its claim for payment. We overrule appellant’s point claiming that appellee’s pleadings were insufficient to support the judgment.

In Southline’s response to interrogatories, it stated that Whitey Balge was employed as shop foreman in its Airline Drive Shop in July of 1973. In his trial testimony, the vice president and general manager of Southline stated that Dave Plaunty was employed as rental service supervisor at the time in question. Terry Johnson, the service manager for National in July, 1973, testified that Dave Plaunty was employed by Southline as its service manager. Johnson explained that National had previously performed service work for Southline, and that Southline’s common practice was to request National’s services by telephone call, usually from Dave to Johnson or Johnson’s supervisor. Southline was in the forklift business, and this request was for service on a forklift machine. In July, 1973, Johnson dealt with Dave and Whitey regarding the forklift repair made the basis of this suit; they requested that he submit estimates for the repair or replacement of the motor. The motor was removed and replaced while the machine was on the premises of appellant Southline. The work continued over a two to three day period, and Dave and Whitey were present during the work and approved the service job upon completion. Defendant’s exhibit one is a statement of account from National to Southline showing three items for payment incurred in April and October of the same year. National’s division manager testified that those items had been paid.

*343 National s recovery in this case rests on a showing of Dave’s and Whitey’s authority to contract. It must show some representations made by Southline to those dealing with its agents. Because there is no evidence of a direct communication of authority, Southline’s agents must have been clothed with sufficient apparent authority on which third parties were entitled to rely. The doctrine of apparent authority is based on estoppel, and to charge a principal under this theory, one must show conduct on the part of the principal that would lead a reasonably prudent person, using diligence and discretion, to suppose that the agent has the authority he purports to exercise. Chastain v. Cooper & Reed, 152 Tex. 322, 257 S.W.2d 422 (1953). The acts or words of the agent are not to be considered in determining the existence of this relationship. Bugh v. Word, 424 S.W.2d 274 (Tex.Civ.App. — Austin 1968, writ ref’d n. r. e.).

We hold that there is evidence in the record of apparent authority of Southline’s employees to bind the company for service repairs. The course of dealing between the parties and the manner in which all service requests were made by Southline would indicate to a third party dealing with the service manager and shop foreman that those employees had authority to so act. Appellant’s no evidence points are overruled.

Appellant further argues that the finding of authority is against the great weight and preponderance of the evidence, or alternatively, that it is supported by insufficient evidence. Such a challenge to the evidence requires this court to consider all the evidence to determine if the evidence supporting the finding is so weak, or the evidence to the contrary so overwhelming, that the finding should be set aside. Garza v. Alviar, 395 S.W.2d 821 (Tex.1965).

In addition to the evidence recited above supporting the finding of authority, the record reveals testimony contrary to that finding. Southline, in its answers to interrogatories, responded that Dave Plaunty would have had authority to contract for such repairs only if his request had been confirmed by written purchase order, and the record reveals no such purchase order. Johnson, National’s service manager, testified that he only knew of Plaunty’s and Balge’s authority to contract for repairs from what they had told him.

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Bluebook (online)
598 S.W.2d 340, 1980 Tex. App. LEXIS 3235, Counsel Stack Legal Research, https://law.counselstack.com/opinion/southline-equipment-co-v-national-marine-service-inc-texapp-1980.