Sumrak v. Tenneco Oil Co.

648 S.W.2d 778, 1983 Tex. App. LEXIS 4207
CourtCourt of Appeals of Texas
DecidedMarch 17, 1983
Docket2-82-092-CV
StatusPublished
Cited by2 cases

This text of 648 S.W.2d 778 (Sumrak v. Tenneco Oil 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
Sumrak v. Tenneco Oil Co., 648 S.W.2d 778, 1983 Tex. App. LEXIS 4207 (Tex. Ct. App. 1983).

Opinion

OPINION

ASHWORTH, Justice.

Appellant, Belinda Sumrak, appeals from an instructed verdict in favor of appellee, Tenneco Oil Company.

Reversed and remanded.

Appellant alleged she sustained an injury on October 29,1979, when she was struck in the head by a defective door at a convenience store. Suit was filed on April 3, 1980, first amended petition was filed July 28, 1980, and second amended petition was filed March 10, 1981. Each of the three pleadings alleged the store was owned and operated by Tenneco, Inc. Tenneco, Inc., filed its original answer on May 1, 1980, setting forth various special exceptions and a general denial; its first amended original answer was filed December 11, 1980, alleging certain affirmative defenses and a general denial; its second amended original answer was filed October 30,1981, (one day after the running of the two year statute of limitations) again alleging certain affirmative defenses and a general denial, but alleging for the first time a verified denial of ownership or management of the store in question, and denying liability in the capacity sued.

Appellant submitted the following request for admission to Tenneco, Inc.:

“2. That the Tenneco store located at 2300 Collins, Arlington, Texas, was owned and operated by Tenneco, Inc. on October 29, 1979.”

On December 18, 1980, Tenneco, Inc., filed the following answer to such request: “Denied. The store was owned by Tenneco Oil Company.”

The case was called for trial on April 13, 1982. Appellant’s attorney dictated Plaintiffs’ Third Amended Original Petition into the record. The only change made in this last petition was to substitute Tenneco Oil Company as defendant in place of Tenneco, Inc. The same attorney who had been representing Tenneco, Inc., then dictated into the record an answer on behalf of Tenneco Oil Company. This last answer alleged a general denial, certain affirmative defenses, and the running of the two year statute of limitations. Appellee’s attorney stipulated an agreement for the dictation of the last petition, and waiver of service of process in order that the case could go to trial without a continuance.

A jury was selected and the case proceeded to trial. When appellant rested, appellee moved for and was granted an instructed verdict on the ground that the action was barred by the running of the two year statute of limitation.

Appellant contends that there is sufficient identity of parties in this case to warrant a holding that service on one is service on the other. In support of such contention, she cites Gentry v. Credit Plan Corporation of Houston, 528 S.W.2d 571 (Tex.1975), which holds that under the facts in that case, one corporation was the alter ego of another corporation. There apparently was considerable testimony and evidence in that case concerning the relationship of the corporations involved. Suit was brought against Credit Plan Corporation of Houston alleging unreasonable collection efforts. After more than two years from accrual of the cause of action, Colonial Finance Corporation was joined as a defendant, and even later Kelsor Corporation was also joined as a defendant. The court held that under the extensive evidence in that ease that Credit *780 Plan Corporation was not regarded as a separate business entity but as simply an office of Colonial Finance Corporation. During the year in which the suit was filed the stockholders of Colonial exchanged their stock for an equal number of shares of Kelsor Corporation, and the officers and directors of Colonial became officers and directors of Kelsor, and Colonial was later merged into Kelsor.

In the case under consideration the following evidence has bearing on identity of parties: Tenneco Oil Company is a subsidiary of Tenneco Corporation; Tenneco Corporation is a subsidiary of Tenneco, Inc. Eldon Montz testified that he was an employee of Tenneco Oil Company that Tenne-co Oil Company has an office in Atlanta, Georgia; that Tenneco, Inc. has a building in Houston, Texas; that Montz was hired in Houston, Texas; that his paychecks are mailed to him from Houston, Texas; that the same attorney who represented Tenne-co, Inc., also represented Tenneco Oil Company when it became defendant, (we note that most questions [by appellees’ attorney] to Montz concerned his relationship with “Tenneco”).

The evidence outlined above falls short of that necessary to satisfy the alter ego holding as found in Gentry v. Credit Plan Corp., supra.

Appellant cites Continental Southern Lines, Inc. v. Hilland, 528 S.W.2d 828 (Tex.1975). In that case Ruth Hilland sued Continental Trailways, Inc., a Texas corporation, for injuries she sustained in Louisiana while getting off a bus marked “Continental Trailways”. The bus involved was owned and operated by Continental Southern Lines, Inc., a Louisiana corporation. Hilland amended her suit after two years naming Continental Southern as defendant, and it asserted the two year statute of limitations. The sole purpose of Continental Trailways, Inc., was to preserve the trade name “Continental Trailways”. Continental Southern Lines, Inc., had previously been Southern Bus Lines, Inc., and changed its name when it started operating under the trade name “Continental Trailways”. The trial court overruled the plea of limitations and the Court of Civil Appeals affirmed; the Supreme Court reversed on the limitations question, but remanded for trial in the interest of justice. In the court’s opinion, Chief Justice Green-hill stated, “The primary purpose of a statute of limitations is to compel the exercise of a right within a reasonable time so that the opposite party has a fair opportunity to defend while witnesses are available and the evidence is fresh in their minds. While the plaintiff made a mistake in her original petition as to the defendant that should have been sued, it is our opinion that she should be given, under the circumstances here present, an opportunity to prove that the Continental Southern Lines, Inc., was cognizant of the facts, was not misled, or placed at a disadvantage in obtaining evidence to defend the suit.”

We will apply the facts in this ease to the tests set forth in Hilland. In our discussion of Gentry, we enumerated several factors pertaining to identity, and will not enumerate them again. In addition, the record reflects the following: Tenneco, Inc., advised appellant in answer to admissions filed on December 11,1980, that the store in question was not owned or operated by Tenneco, Inc., but was owned by Tenneco Oil Company. On December 19, 1980, Ten-neco, Inc. filed cross questions to be answered by Dr. Albert M. Randolph, a medical doctor who treated appellant. On March 10, 1981, appellant filed her second amended original petition, still complaining of Tenneco, Inc. On May 22, 1981, appellant filed answers to Tenneco, Inc.’s second set of interrogatories (the record does not reflect when such interrogatories were filed). On July 7,1981, Tenneco, Inc., filed answers to appellant’s interrogatories which were filed on May 28,1981.

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648 S.W.2d 778, 1983 Tex. App. LEXIS 4207, Counsel Stack Legal Research, https://law.counselstack.com/opinion/sumrak-v-tenneco-oil-co-texapp-1983.