Traders & General Ins. Co. v. Cole

108 S.W.2d 864, 1937 Tex. App. LEXIS 1072
CourtCourt of Appeals of Texas
DecidedJune 18, 1937
DocketNo. 1684.
StatusPublished
Cited by4 cases

This text of 108 S.W.2d 864 (Traders & General Ins. Co. v. Cole) 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
Traders & General Ins. Co. v. Cole, 108 S.W.2d 864, 1937 Tex. App. LEXIS 1072 (Tex. Ct. App. 1937).

Opinion

GRISSOM, Justice.

Appellee is a resident of Fisher county and, while employed by the Uvalde Construction Company in September, 1934, received an injury compensable under the Workmen’s Compensation Law (Vernon’s Ann.Civ.St. art. 8306 et seq.). Appellant was said employer’s insurer. The injury occurred in Fisher county. The residence of appellant is in Dallas county. Appel-lee alleged that his wages were $15 per week; that he is totally and permanently disabled and has become insane as a result of the injuries; that appellant paid appellee compensation for a period of 7 weeks; and that on November 7, 1934, appellant and ap-pellee executed a compromise settlement agreement whereby appellant agreed to pay (and it did pay) to appellee the additional sum of $58.50 in settlement of appellee’s claim. The settlement was approved by the Industrial Accident Board. Appellee alleged that at the time of said settlement he did not have mental capacity to execute the same. Among other things, appellee prayed that the settlement agreement and approval of the board be set aside, and for compensation at $9 per week for 401 weeks. Appellant filed its statutory plea of privilege praying that the case be transferred to Dallas county. Appellee by his controverting plea sought to hold venue in Fisher county on two grounds: (1) Under subdivision 7, of article 1995, R.S.1925, or because fraud was committed in Fisher county in procuring said settlement agreement; (2) because the injury occurred in Fisher county and the Compensation Act fixed venue in said county. The plea of privilege was heard by the court and overruled, from which order and judgment appellant has appealed to this court.

It has now been definitely determined that a court upon setting aside a compromise settlement agreement has no jurisdiction |to award compensation and that after the court has set such compromise settlement aside the claimant is relegated to the board for further proceedings and *866 relief. Commercial Cas. Ins. Co. v. Hilton, 126 Tex. 497, 87 S.W.(2d) 1081, 1082, 89 S.W.(2d) 1116. The present suit, not being properly a proceeding under the Workmen’s Compensation Law, but a suit to set aside a contract alleged to have been procured by the fraud of appellant, is a proceeding in equity, and venue statutes applicable to workmen’s compensation cases have no application. Benson v. Travelers’ Ins. Co. (Tex.Civ.App.) 40 S.W.(2d) 966 (writ dismissed); National Indemnity Underwriters of America v. Wood (Tex.Civ.App.) 104 S.W.(2d) 896. Appellee having, as we understand his brief, conceded the above conclusion to be correct, we shall not further consider the second ground formerly depended upon by appellee for his right to retain venue of this cause in Fisher county.

We shall now consider whether or not the court was authorized to overrule the plea of privilege on the theory that fraud was committed in Fisher county in procuring the compromise settlement agreement. There is no evidence of representations, fraudulent or otherwise, relied upon as inducing Cole to enter into the compromise agreement, unless it be shown by the following testimony of the doctor who treated him for his injuries.

“Q. Did he [Cole] ask your suggestion and advice about it? A. He asked my opinion, yes sir.

“Q. Did you tell him that you thought he would be able to go back to work in a month? A. That’s right. I told him I thought that would be a fair settlement.”

In connection with the above quotation from the testimony, we desire to point out that the doctor testified he had attended and treated Mr. Cole for about 40 days after his accidental injuries on the 4th of September; that on the day of the execution of the agreement some person who is not identified in the record, but who, for the purpose of this opinion, we will assume to be the adjuster for the insurance company, came with Mr. Cole to the doctor’s office; that said two visitors stayed in the doctor’s office for thirty or forty minutes; that the question of settlement was discussed; that Cole participated in such discussion. The doctor testified further that no misrepresentations were made to Cole by any one; that there was just a free open discussion; that Cole signed the settlement agreement, understanding that he was making a final settlement, and agreed to accept the sum of $58.50. This testimony is not disputed.

Unless such testimony is sufficient to authorize a finding that fraud in procuring the settlement agreement was perpetrated upon Cole in Fisher county, there is no evidence to support such a conclusion.

We are of the opinion that the evidence is insufficient to support a finding of fraud perpetrated in said county.

The evidence quoted came from appel-lee’s witness, the doctor in question. Fie was employed by appellant to attend to appellee after his injuries. For the purpose of this opinion we assume that he^was the agent of appellant. He was also the family physician of appellee. Appellee’s said witness testified without contradiction that the settlement agreement was arrived at after a free open discussion of the matter; that appellee understood he was making a settlement, and that when he signed the release “that was the end of it.”

The statement of the doctor, we think, cannot be fairly construed as anything more than an expression of an honest opinion that appellee would be able to work in a month. Appellee’s witness, the doctor, said that appellee asked for his opinion, and the doctor told appellee what he, the doctor, thought; that is, that the doctor “thought” appellee would be able to go back to work in a month and “thought” the amount agreed upon would be a fair settlement. As we understand appellee’s brief, there was and is no contention that the doctor’s expression of his opinion was intentionally false, dishonest, or fraudulent, nor is it contended that the doctor’s statement was anything further than the requested expression of his honest opinion. If there be any contention to the contrary, we think it finds no support in the evidence. Be the opinion honest or otherwise, before it could be a possible basis for a finding that a fraud was perpetrated, .the doctor’s statement must be shown to have been false. It is not shown to have been incorrect, unless it be shown by the evidence that after the injury the appellee became insane. We do not believe that proof that a person is sane prior to an accident and that at some time after the accident he becomes insane, in the absence of evidence of some character, opinion or otherwise, that the accident was the cause of the insanity, constitutes proof that the insanity is a result of the accident. There was, therefore, no proof that the doctor’s statement to ap- *867 pellee at the time of the discussion of the settlement agreement and prior to its execution was incorrect. Certainly before the doctor’s statement can be held to be legally fraudulent it must be shown to have been a statement of something more than an honest opinion and his statement must be shown to have been false. In our opinion, the doctor’s statement is not shown to have been other than the expression of an honest opinion not relating to a then existing fact, and, furthermore, it is not shown to have been either incorrect or false.

The case of Gulf, C. & S. F. Ry. Co. v. Huyett (Tex.Civ.App.) 89 S.W. 1118, 1119; Id., 99 Tex. 630, 92 S.W. 454, 5 L.R.A. (N.S.) 669; Id., 49 Tex.Civ.App. 395, 108 S.W. 502, is distinguishable on the facts.

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Bluebook (online)
108 S.W.2d 864, 1937 Tex. App. LEXIS 1072, Counsel Stack Legal Research, https://law.counselstack.com/opinion/traders-general-ins-co-v-cole-texapp-1937.