State v. Bounds

581 S.W.2d 799, 1979 Tex. App. LEXIS 3647
CourtCourt of Appeals of Texas
DecidedMay 17, 1979
DocketNo. 1396
StatusPublished
Cited by4 cases

This text of 581 S.W.2d 799 (State v. Bounds) 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
State v. Bounds, 581 S.W.2d 799, 1979 Tex. App. LEXIS 3647 (Tex. Ct. App. 1979).

Opinion

OPINION

BISSETT, Justice.

This is a suit brought by the State of Texas to enforce the provisions of Tex.Rev. Civ.Stat.Ann. art. 911b, the “Texas Motor Carriers Act,”1 to recover civil penalties thereunder and for an injunction. Trial was to the court, sitting without a jury. Judgment was signed on May 24, 1978, which denied all relief prayed for by the State. The State has duly perfected an appeal from that judgment.

The State alleged that Tom Bounds acted unlawfully as a motor carrier on 38 separate days during the period from July, 1976, to September, 1976, in that he transported property for compensation or hire over a public highway in Texas between two incorporated cities without having first obtained a certificate of public convenience and necessity or a permit from the Railroad Commission authorizing such transportation, in violation of the Act. It further alleged that Mercedes Co-operative Gin aided and abetted Bounds in such unlawful operation, in violation of the Act. Both defendants denied such allegations.

The controlling question presented by this appeal is whether or not Bounds was a motor carrier for compensation or hire, as defined by the Act, who was required to possess either a certificate of public convenience and necessity from the Railroad Commission or á permit from the Commission during the trucking operation here involved. The question is one of fact, to be determined from all the facts and circumstances in evidence. Anderson, Clayton & Co. v. State, 125 Tex. 453, 82 S.W.2d 941 (1935, opinion adopted); New Way Lumber Co. v. Smith, 128 Tex. 173, 96 S.W.2d 282 (1936). If it be held that he was a motor carrier who violated the Act, then, the next issue to be resolved is whether or not the Gin aided or abetted him in the violation.

The Gin is in the business of ginning cotton. As an adjunct to its business, it sold cottonseed to Valley Co-op Oil Mill and received a sales price therefor plus the per ton freight rate set by the Railroad Commission of Texas, which regulated cottonseed shipments. Prior to the 1976 ginning season, the Gin used its own trucks to haul cottonseed to Valley Co-op. For the 1976 season, the Gin changed its trucking operation and leased trucks owned by Bounds to transport the cottonseed from Mercedes, Texas, and Edcouch, Texas, where two of its gins were located, to Valley Co-op, at Harlingen, Texas. The transportation of the cottonseed sold by the Gin to Valley Co-op was over public highways between two or more incorporated cities. It was stipulated that Bounds did not possess a certificate of public convenience and necessity from the Railroad Commission which would authorize him to operate as a common carrier to transport cottonseed for hire over the highways of this State. Counsel for Bounds judicially admitted that Bounds did not have a permit from the Commission.

Bounds leased three trucks to the Gin under three written leases, each of which covered a particular truck. The term of [802]*802each lease was 120 days. Compensation “as rental for said vehicle” was 60<p per mile for each mile “Lessee operates said vehicle.” All of the leases are in identical language, and each contains the following provisions:

“[L]essee agrees to furnish all gasoline and motor oil necessary to operate said vehicle during said period (of lease), and to also furnish at his own expense the driver and assistant driver . . . .” ******
“It is understood and agreed that Lessee shall have full possession and control of the equipment herein described at all times during the term of this lease . Lessee shall select and employ the driver or operator of the vehicle, and that such driver or operator shall at all times be under the control, domination and direction of Lessee . . . ”

Subsequent to the execution of the leases, the parties, at the suggestion of the Gin’s manager, entered into an oral agreement, whereby it was agreed that Bounds would be paid either the rental of 60$ per mile as provided by the leases, or the total of the per ton freight rates that the Gin received from Valley Co-op, less all expenses incurred by the Gin in hauling the cottonseed from its gins to Harlingen, whichever was to his advantage.

Copies of the written leases were filed with the Department of Public Safety, as required by Tex.Rev.Civ.Stat.Ann. art. 6701c — 1 (1977). A written memorandum of the oral agreement was not so filed.

The Gin maintained an “accounts receivable” for Bounds. Posted to that account were certain advancements made by the Gin to Bounds, purchases of gasoline and oil for the trucks under lease, other expense items relating to the operation of the trucks, and all wages paid to the several truck drivers. The Gin deducted the amount of social security taxes chargeable to the truck driver from each check given to the drivers of the leased trucks as wages, and paid that amount to the Internal Revenue Service. The social security taxes so paid by the Gin for the truck drivers were not posted to Bounds’ “accounts receivable,” and Bounds did not reimburse the Gin for such social security taxes.

On October 4, 1976, a final settlement was reached. Bounds received a check from the Gin for the total of the “freight rates” ($11,741.46) collected by the Gin from Valley Co-op. In turn, Bounds delivered his check to the Gin for the balance shown on the “accounts receivable” ($5,127.62).

Bounds admitted that he was in the trucking business at the time he entered into the lease agreements. He owned six trucks. The three which were not under lease to the Gin were used by him in “hauling cotton” under a “permit on them.”

The trial court found that during the time in question: Bounds did not have, nor did he exercise, any authority to hire or fire any of the truck drivers who drove the leased trucks; Bounds did not have, nor did he exercise, any authority relating to the rate of pay, working hours, or details of job performance with respect to the truck drivers; Bounds did not have, nor did he exercise, any authority as to the maintenance of the trucks; Bounds had no right to control the hauling operations; and the Gin had the exclusive right to control the hauling operations.

The trial court concluded that during the time in question: Bounds was not engaged in the transportation of property for hire as contended by the State; Bounds did not transport the Gin’s cottonseed for hire in violation of the Act; Bounds did not furnish to the Gin, during the same period of time, both the trucks and drivers for the trucks; Bounds did not assume the characteristic burdens of the transportation business, and the Gin did assume, in significant measure, those burdens; the Gin did not aid or abet Bounds in a violation of the Act; the State is not entitled to recover any penalties from either Bounds or the Gin, and is not entitled to an order enjoining any possible future violation of the Act by either of them.

None of the findings of fact are challenged in this appeal. All of the conclusions of law are attacked on the ground [803]*803that the trial court “erred as a matter of law” in so “holding.”

The term “motor carrier” is defined in Section 1(g) of the Act as follows:

“The term ‘motor carrier’ means any person . . .

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Related

Murphy v. Waldrip
692 S.W.2d 584 (Court of Appeals of Texas, 1985)
State v. Bounds
604 S.W.2d 74 (Texas Supreme Court, 1980)

Cite This Page — Counsel Stack

Bluebook (online)
581 S.W.2d 799, 1979 Tex. App. LEXIS 3647, Counsel Stack Legal Research, https://law.counselstack.com/opinion/state-v-bounds-texapp-1979.