Texas Employers' Insurance Ass'n v. Sprabery

507 S.W.2d 340, 1974 Tex. App. LEXIS 2045
CourtCourt of Appeals of Texas
DecidedMarch 15, 1974
Docket17484
StatusPublished
Cited by5 cases

This text of 507 S.W.2d 340 (Texas Employers' Insurance Ass'n v. Sprabery) 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
Texas Employers' Insurance Ass'n v. Sprabery, 507 S.W.2d 340, 1974 Tex. App. LEXIS 2045 (Tex. Ct. App. 1974).

Opinion

OPINION

BREWSTER, Justice.

This is an appeal by Texas Employers’ Insurance Association from an order overruling its plea of privilege to be sued in its domicile, Dallas County.

The suit was brought by James W. Spra-bery against the appellant seeking to set aside a compromise settlement agreement that he had made with appellant of his claim for Workmen’s Compensation Insurance.

This is not an appeal from a ruling of the Industrial Accident Board. The venue of that type suit is fixed by the Workmen’s Compensation Law itself.

This suit is an original action brought in a District Court in Wichita County seeking to set aside a settlement agreement that was allegedly procured by fraud.

The appellee seeks to uphold the trial court’s ruling on two grounds, namely: (1) Defendant was a private corporation and the cause of action arose in Wichita County, Texas (Subdivision 23, Art. 1995, *342 Vernon’s Ann.Civ.St.), and (2) because the pleadings and evidence showed that thé fraud sued on occurred in Wichita County, Texas (Subdivision 7, Art. 1995, V.A.C.S.).

The law is settled that a suit against Texas Employers’ Insurance Association cannot be maintained in a county other than the county of its domicile, Dallas County, under Art. 1995, Subdivision 23. That subdivision provides an exception to the general venue statute in instances where the suit is brought against a private corporation.

The appellant, Texas Employers’ Insurance Association, was created by the Legislature when it enacted Art. 8308, V.A.C. S. It was an agency that was created for the purpose of aiding in the administration of the Workmen’s Compensation Law. It is not a private corporation.

This Court will take judicial notice of this statute and of the purposes for which it was enacted. See 23 Tex.Jur.2d, Evidence, Sec. 11, p. 29.

The Court was speaking of the appellant here in the case of Middleton v. Texas Power & Light Co., 108 Tex. 96, 185 S.W. 556 (1916) wherein it said the following: “The insurance association created by the Act is not a private corporation, and this part of the Act is not violative of the Constitution in its provision that no private corporation shall be formed except by general laws. Some such agency as the insurance association may be deemed as essential to the efficient execution of the Act. It was a way of giving effect to the plan as a dependable method of providing the funds necessary for the payment to employees of the compensation the Act is designed to afford. The association is very clearly only an agency for the proper administration of this law. It has no functions or powers which it may exercise for any other purpose. It is denominated in the Act as a corporation, but that may be regarded as a term of convenience. Calling it a corporation does not make it a private corporation. Its character is to be determined by what it is, and not by its name.” (Emphasis ours.)

In Texas Employers’ Ins. Ass’n v. Collier, 77 S.W.2d 878 (Eastland Civ.App., 1934, no writ hist.), the court held that Texas Employers’ Insurance Association is not a private corporation; and that it is a public or quasi public corporation. That Court also held that because Texas Employers’ Insurance Association is not a private corporation, venue of a suit against it cannot be kept in a court in a county other than the county' of its domicile under Subdivision 23, Art. 1995, V.A.C.S.

Because Texas Employers’ Insurance Association is not a private corporation we hold that this suit was not maintainable against it in Wichita County under Subdivision 23 of Art. 1995, V.A.C.S., as is contended for by appellee.

Appellee is contending, under his second numbered contention that we list above, that he had a right to maintain venue of this suit in Wichita County under the provisions of Subdivision 7 of Art. 1995, V.A. C.S.

We agree with that contention and affirm the case.

Subdivision 7 provides: “In all cases of fraud . . . suit may be brought in the county where the fraud was committed

Appellee alleged in substance that he sustained an injury on the job while working for his employer and that appellant, who was the insurance carrier, did, through its employee, refer the appellee to a Dr. Thomas in Amarillo, Texas; that he went to Dr. Thomas for examination and treatment and this Dr. Thomas and this appellant, through another of its employees, did represent to plaintiff that he would have no permanent disability and he would be able to return to his usual job; and that these representations were false; they were relied on by plaintiff and he was thereby caused to execute the property set *343 tlement agreement, settling his claim for Workmen’s Compensation for $6,500.00, plus $5,782.00 that he had already been paid.

At the venue hearing it was proved that appellant, in response to a request for admission of facts, admitted the following facts: (1) that on April 15, 1970, appellee was working for his employer; (2) on that date he was injured while working in his employment for his employer; (3) that appellant here was the Workmen’s Compensation insurance carrier at the time for his employer; (4) that appellant’s employees referred appellee to a Dr. Thomas in Amarillo, Texas, for treatment and examination; (5) that appellant agreed to and did pay Dr. Thomas for this service; (6) that on July 28, 1972, appellant had an employee named Kenneth Burdick; (7) that on that date Burdick had authority to settle appellee’s claim on behalf of appellant; (8) that on August 25, 1972, the Industrial Accident Board did approve the settlement agreement entered into by the parties settling appellee’s claim for $6,500.00 cash and the $5,782.00 already paid him.

Appellee testified in substance that appellant’s employees sent him to Dr. Thomas in Amarillo and this doctor operated on his back; he later returned to Wichita Falls; while in Wichita Falls he talked to Dr. Thomas, who was in Amarillo, and Dr. Thomas advised him over the telephone that he would be able to go back to his regular employment. He further testified that he later contacted appellant’s adjuster, Kenneth Burdick; that he signed the compromise settlement agreement of July 28, 1972;- that before signing it he talked to Burdick about what Dr. Thomas had said about his condition; Burdick told appellee that Dr. Thomas said he could go back to work.

Appellee also testified that he relied on Dr. Thomas’ statement to him and on the statement of Burdick made in Wichita Falls, to the effect that Dr. Thomas told him he would be able to go back to work. He testified that in reliance on these statements he settled the claim.

There was evidence offered from which the court could have concluded that appel-lee could have recovered more for his claim than the amount it was settled for.

At the plea of privilege hearing, in order to prove his right to keep venue of the case in Wichita County, it was necessary that appellee prove, prima facie, a cause of action for fraud committed in the county of suit. 60 Tex.Jur.2d, Venue, Sec. 218, p. 103; and Reese v. Phillips, 233 S.W.2d 588

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Bluebook (online)
507 S.W.2d 340, 1974 Tex. App. LEXIS 2045, Counsel Stack Legal Research, https://law.counselstack.com/opinion/texas-employers-insurance-assn-v-sprabery-texapp-1974.