Texas Co. v. Wheat

168 S.W.2d 632, 140 Tex. 468
CourtTexas Supreme Court
DecidedJanuary 27, 1943
DocketNo. 7985
StatusPublished
Cited by45 cases

This text of 168 S.W.2d 632 (Texas Co. v. Wheat) is published on Counsel Stack Legal Research, covering Texas Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Texas Co. v. Wheat, 168 S.W.2d 632, 140 Tex. 468 (Tex. 1943).

Opinion

Mr. Chief Justice Alexander

delivered the opinion of the Court.

This- suit was brought by Mrs. William M. Wheat and her husband against Sam Gossen and The Texas Company for damages for personal injuries sustained by Mrs. Wheat as the result of a fall in front of a service station in the City of San Antonio. At the conclusion of plaintiffs’ evidence, plaintiffs took a nonsuit as to Gossen, and the court instructed a verdict in favor of The Texas Company. The Court of Civil Appeals reversed the judgment of the lower court and remanded the cause for a new trial. 159 S. W. (2d) 238.

The Texas Company leased the service station to Gossen. There was evidence that Gossen’s employees negligently washed lubricating oil drained from an automobile on the premises across the sidewalk in front of the service station, and that Mrs. Wheat, who was walking on the sidewalk, slipped on the oil and fell and was injured. It was the contention of the plaintiffs that the relation of master and servant existed between The Texas Company and Gossen so as to make the company liable for the negligence of Gossen and his employees.

The contract between The Texas Company and Gossen was evidenced by written instruments, and the Court of Civil Appeals was of the opinion that these instruments, on their face, created the relation of landlord and tenant; but the court was also of the opinion that there were circumstances in evidence from which the jury could have drawn the inference that the real relation between the company and Gossen was that of master and servant. It was for this reason that the cause was remanded for new trial, and it was upon this holding that we granted a writ of error.

The testimony concerning the relation between the company and Gossen consisted entirely of written instruments and Gossen’s testimony. The written instruments were the [471]*471“Lease Contract,” “Letter Modifying Rental Clause,” and a “Sales Contract.” Essential portions of these instruments are copied in the opinion of the Court of Civil Appeals, and need not be here repeated. The Lease Contract leased the premises to Gossen primarily for use as a service station at a rental of $280.00 per month for a period of one year, and from year to year thereafter, subject to . the right of termination by either party at the end of the year upon ten days’ notice. Lessee was required to keep the premises in good repair and in a clean, safe, and healthful condition, and upon default in any of the covenants lessor could terminate the contract. By letter written at substantially the same time as the delivery of the Lease Contract, the rent was reduced to $100.00 per month, plus one cent per gallon on each gallon of gasoline delivered to the premises in excess of 10,000 gallons per month. This provision, however, was only temporary and could be cancelled at the will of the lessor. In the event of its cancellation of the original rental of $280.00 per month would apply. Simultaneously a Sales Contract was entered into by which Gossen agreed to buy from The Texas Company certain quantities of gasoline, oils, and greases each year — the prices, at seller’s election at time of delivery, to be either the seller’s posted service station price therefor, less seller’s posted discount to dealers, or the seller’s posted dealer’s price therefor, as posted and displayed at seller’s bulk plant from which the deliveries were to be made. While there was nothing in the contract to prohibit lessee from selling the products of other dealers at the station, he was not permitted to sell products purchased from others under the trade-mark or trade-name. of the seller unless specifically so authorized by the seller. He was permitted to use the company’s trade-marks and trade-names to identify and advertise products manufactured by the company and sold by him.

According to Gossen’s testimony he purchased from a third party petroleum products and other personal nroperty on the leased premises at a cost of $900.00, and after leasing the premises from The Texas Company, operated the station as his own. He had his name on the station; paid the light, water, and telephone bills and city license fees; employed, controlled, paid, and discharged his employees; fixed his own hours for opening and closing the station; purchased and paid cash for merchandise; handled batteries, tires, and other goods not sold by The Texas Company,' and sold such merchandise, including commodities purchased from The Texas Company, for [472]*472cash or on credit, and at such prices as he saw fit; bore the losses and kept the profits; and finally sold the lease, with the consent of the lessor, together with the merchandise on hand, for $1,300.00, and appropriated the money to his own use. There was evidence that the representatives of The Texas Company frequently conducted schools or gave lectures for operators of service stations, and that he was notified when and where these meetings were to be held. He was invited to attend these meetings, but was not required to do so. He usually attnded the meetings. He thought it was to his interest to do so because it improved his ability to make sales. At these meetings he was taught how to approach a customer, what kind of service to render, how to render it in the most efficient manner in the shortest time, how to lubricate cars, and how to keep the station and rest rooms clean. He attended these meetings and obtained a “Diploma.” It was his understanding that the instructions given at these schools were mere suggestions, which he could follow if he liked, but was not required to do so. Other wholesale companies that supplied him with tires and batteries for sale at the station conducted similar schools, which he attended. From time to time representatives of The Texas Company would come by the station and instruct him how to keep the station clean and how to service cars. He interpreted these instructions as mere suggestions. He appreciated the instructions because they helped him increase his sales. He followed the suggestions if he thought they were helpful — otherwise he did not. The Texas Company carried on a national advertising campaign, by which it assured motorists that rest rooms at which the sign “Texaco Registered Rest Room” was displayed were clean. Such service was available to independent dealers. In order to have the right to display such signs operators were required to maintain certain minimum standards of cleanliness. The company supplied Gossen with one of these signs. He considered it worth something to a service station operator to have the sign displayed in front of his station because it helped to increase his sales. He understood that he was required to keep the rest room clean — otherwise the company would remove the sign and deprive him of the advertisement. Occasionally an inspection from the company would come by and inspect the rest room, and if it was not clean he would suggest that it be cleaned up. He and his employees had the privilege of wearing The Texas Company uniforms, but were not required to do so. He considered it good advertisement to use the uniforms. He was allowed to sell gaso[473]*473line on The Texas Company credit cards, but was not required to do so. He did so because he could always get his money from The Texas Company. The company furnished him with stationery for recording and reporting such sales. The company furnished him with signs showing that Texaco products were sold at the station,. and he used them because he thereby obtained the benefit of the national advertising of the company.

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Bluebook (online)
168 S.W.2d 632, 140 Tex. 468, Counsel Stack Legal Research, https://law.counselstack.com/opinion/texas-co-v-wheat-tex-1943.