St. Louis Southwestern Ry. Co. of Texas v. Davy Burnt Clay Ballast Co.

288 S.W. 855
CourtCourt of Appeals of Texas
DecidedNovember 6, 1926
DocketNo. 9344.
StatusPublished
Cited by7 cases

This text of 288 S.W. 855 (St. Louis Southwestern Ry. Co. of Texas v. Davy Burnt Clay Ballast Co.) 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
St. Louis Southwestern Ry. Co. of Texas v. Davy Burnt Clay Ballast Co., 288 S.W. 855 (Tex. Ct. App. 1926).

Opinion

VAUGHAN. J.

At a former term of this court judgment was rendered, reversing the judgment of the lower court and dismissing the cause. 273 S. W. 630. Writ of error was obtained by appellee, and on an opinion by the Commission of Appeals the Supreme Court reversed the judgment of this court, in so far as the dismissal of the cause of action, and remanded the cause to this court, with instructions to pass upon the assignments of error not comprehended in its former opinion (285 S. W. 295), that “necessary directions may be given on those questions that may arise on another trial.” Por a statement of the case, we refer to original opinion of this court. 273 S. W. 630, supra.

The record disclosed that not only was the issue on which this court was reversed directly called to appellee’s attention by general demurrer, duly presented in the court below, but that in this court, both by brief and oral, argument (and we are justified in assuming the same position was taken in the trial court), appellee deliberately took the position that it was exempt from the provisions Of title 25, c. 26, Vernon’s Sayles’ Texas Civil Statutes 1914, under article 1319 (now title 32, e. 19, and article 1538, R. C. S. 1925), by reason of the fact that it was a corporation created for the purpose of maintaining a railway within the meaning of said article 1538, supra.

In reaching the conclusion that the cause should be dismissed, and not remanded, because of the failure of appellee to allege and prove that it, as a foreign corporation, had obtained a permit to do business from the. secretary of stal^e, we but followed the rule announced by the Supreme Court in the following cases: Taber v. Interstate Bldg. & Loan Ass’n, 91 Tex. 92, 40 S. W. 954; S. R. Smythe Co., v. Fort Worth Glass & Sand Co. et al., 105 Tex. 8, 142 S. W. 1157 — and the plain provisions of article 1536, Revised Civil Statutes of 1925.

In the opinion of the Commission of Appeals, no authority is cited holding contrary to the rule of law announced by the above-named eases, and, as same were not discussed, they cannot be held to have been in that respect modified or limited, certainly not incidentally overruled. Therefore the members of the legal profession, consulting the cases relied upon as authority by this court in deciding -that question, will find themselves in a state of uncertainty as to the law on a kindred situation.

Yet the judgment of this court was reversed, with instructions to remand the case to the trial court, in order that appellee should have another opportunity, by amendment, to allege and prove that it had obtained a permit to do business in compliance' with the provisions of said title 32, c. 19, supra. This holding undoubtedly announces a new and far-reaching rule of practice, viz. that, where a party to a suit has failed to select the safe mode of procedure, he is entitled to an opportunity to extricate himself from the embarrassing situation in which his first selection placed him. This now must be accepted as a rule of procedure applicable, upon the principles therein stated, to all causes where it may develop that a material omission vital to the right to maintain a suit has been deliberately made in a pleading. This has been declared by the decision of the Supreme Court, supra, to be the rule of procedure in such matters, and until set aside by that tribunal must remain the law of this state.

Two contracts for the burning of ballast were entered into by and between appellant and appellee. Contract No. 1, dated June 22, 1908, related to pit No. 1, and contract No. 2, of date July 22, 1914, related to pit No. 2. Contract No. 1 was supplemented by an extension agreement dated January 5, 1910. Contract No. 1 furnishes the real subject-matter for controversy in this suit. In order to determine the major controversy between the parties, it is only necessary to consider and to give proper legal effect to the following provisions of contract No. 1:

“That the ballast company, for and in consideration of the compensation to be paid to it by the railway company, as hereinafter provided, hereby agrees to bum two hundred thousand (200,000) cubic yards of burnt clay ballast between Clinton and Josephine on the line of *857 said railway company, said ballast to be thoroughly burned and first class in every respect and furnished on the following terms and conditions: * * * and to complete the burning of said two hundred thousand cubic yards of ballast not later than December SI, 1909.
“II. The ballast company shall furnish the necessary lands from which to procure the required material for such ballast, and the ballast company shall furnish all material, tools, labor, and appliances necessary to carry out the provisions of this contract except as hereinafter specifically provided.
“III. The railway company shall furnish free of charge to the ballast company, on cars in the ballast pit, sufficient wood for starting and relighting of fires, and the necessary nut, pea, and slack coal for the burning of said ballast as desired by said ballast company. * * *
“VII. In consideration of the foregoing, the railway company agrees to receive two hundred thousand cubic yards of ballast at such location during the life of this contract, and to pay for the same at the rate of eighteen cents per cubic yard in pit, * * * on the first day of each month or as soon thereafter as is practicable. The railway company shall have the measurements taken of the ballast in the pit as shown by the external dimensions of the pile of ballast; * * * after each monthly measurement is taken the railway company shall have the right to load ballast as fast as it becomes accessible, except such as is necessary for the process of further burning.
“VIII. The railway company agrees, upon the completion of this contract and of the delivery of the full amount of two hundred thousand cubic yards of burnt clay ballast at said location, at the time and of the quality above specified, to pay for the same at the above-mentioned rate, payments to be made on or before the 25th day of each month and each and every cubic yard of burnt clay ballast as shown by engineer’s estimate taken on or about the 1st day of same month, less 10 per cent., which is retained by the railway company to liquidate damages in case the ballast company fails to complete this contract as specified, but upon the 'completion of the burning of the full amount of two hundred thousand cubic yards of burnt clay ballast at said location, as above mentioned, the railway company agrees to pay the full amount due by the ballast company under this contract.
“IX. The final measurements shall be pit measurements, and shall be made by the engineer of the railway company and the engineer of the ballast company, as soon as all the ballast has been moved from the pit, and in case they cannot agree then same shall be submitted to arbitration as hereinafter provided, and final settlement shall be made as soon as possible thereafter. In case all the ballast shall not have been removed from the pit, then the engineer shall assume that the bottom of the pit shall run as shown by bottom of pit where all ballast has been removed and such bottom exposed and final measurement shall be made accordingly.
“X. ‘Pit measurements,’ means external measurements of the pit of ballast standing in ballast pit.”

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288 S.W. 855, Counsel Stack Legal Research, https://law.counselstack.com/opinion/st-louis-southwestern-ry-co-of-texas-v-davy-burnt-clay-ballast-co-texapp-1926.