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American Smelting & Refining Company v. Ridgway
412 S.W.2d 675
Tex. App.
1967
Check Treatment

*1 675 perience are such as to entrust to his care only safety his own and that of the

aircraft, safety passengers but the as

well. therefore, hold, that the term

We

“duly pilot,” used licensed or certificated provision limiting liability cases “passenger”

where the insured is a on an pilot, operated by

aircraft such neces

sarily pilot refers who holds a li

cense or certificate which authorizes operate carrying passengers. an aircraft Burns v. Ins.

Cf. Mutual Benefit Life

Co., F.Supp. 847, Mich., (W.D.

aff’d, den., 179 F.2d U.S. cert. per A 1362). 70 S.Ct. 94 L.Ed. holding pilot

son certificate is not student pilot.

such a of the trial af- court is

firmed. J.,

KLINGEMAN, participating.

AMERICAN SMELTING & REFINING

COMPANY, Appellant, doing

William O. RIDGWAY, et al., Appellees.

No. 14981. Appeals

Court Civil of Texas.

Houston.

Feb. 1967.

Rehearing Denied March 1967.

Huggins, Vickery McConnell, Harley & McConnell, Houston, Kucera, Lay Lightfoot, & Lay Bennett Houston, appellees. *2 were WERLEIN, negotiated by checks all endorsed and Justice. 13, appellant; 1961, on July August that on brought upon a ac- This sworn suit was 12, 1961, September 13, 1961, on on October Smelting & by appellant, count American 11, 1961, 1962, 25, September The and on to Company, referred Refining sometimes Ridgway Company, corporation, issued a Metals, being a divi- the latter Federated appellant, checks in to all various amounts Refining Smelting & sion of American Ridgway of said being signed checks “The against Ridgway, Company, William O. Co., Ridg- Inc.” by Ridgway O. or “The W. Company, Ridgway The doing business as Co., way Ridgway, Jr.; by that Inc.” W. O. corporation. Ridgway Company,

and a The nego- said were and checks all endorsed trial, filed, hut before After the suit was by appellant; the amount tiated and that appellee, Ridgway, ad- William O. delivered sued was for merchandise mind, appellee, judged be unsound and to of Ridgway of The appointed Ridgway, Jr., William O. Company. made guardian person of and estate and his by a was tried party to the suit. The case The that indebtedness court concluded jury judgment the court without a and Company, Ridgway sued on that of The corporation in against and rendered a that of O. and not William Ridgway, appellees, favor of the O. William Ridgway; and that had notice and Company, Ridgway doing business Company that The a Ridgway guardian. his William O. at of tion the time of the deliveries Among way, tion was mined estate. lee, $3,507.34, on findings of fact and conclusions The and The pany; At the June William O. State of Texas owing parties only Jr. was the individual properly other issued request 1, as the and issue before us on 1960 a Ridgway stipulated prior findings, by denied only question open certificate of and Secretary the court found The account the of his William liability on such year is whether Ridgway there was to be deter- court made person and O. State account. against sum appel- Ridg- Com- law. and due n the ths of were Bank Dr. Federated Metals 4791.” Each of check the ing and ing; as to who 1960 has Special Ridgway Co.—SPECIAL ACCOUNT” W. O. Each [16] stamped “The inch wide described in Ridgway Refining of Acct. 7608 printed OX-4-4791.” stamped Commerce following: the five Ridgway “For has Co.” There is space on Division the checks for appellant’s petition. Deposit five checks printed checks drawn such Jensen Co., Inc., “The All of said space Houston, American in in the Ridgway Drive OX-4— the left hand 7608 Jensen face of the no evidence issued after the follow- deposit. National on “The Texas, Smelt- Co.— by 1960, Appellant court erred May 31, Ridgway asserts that trial through O. William rendering judgment take proprietorship under business as a Ridgway The from from because Com- Ridgway and name of change incorporated a purchased supplies pany Amer- without time time from that he firm name did not show Smelting Company; and Refining ican & 1958, provisions of Arti- complied September 10, on notice on October 1302-2.02, Annotated Texas April and cle Vernon’s on on December provides in substance Company, Statutes. article May 9, Ridgway Said issued, firm desires whenever proprietorship, checks to $3,300.98 firm incorporated change without ranging from various amounts name, shall, in addition being signed firm $5,169.73, all said checks such required at common AC- notice of dissolution “The Co.—SPECIAL law, be- give intention that said such Ridgway; O. COUNT” incorporated come unmistakably that, at least four consecu- clear language “Until tive newspaper published published weeks some at such notice has been so for the the seat above-named, in the government, period change State full shall county in which such firm principal place has its take of such firm or *3 office, and that Appellee “Until such thereof.” members contends published period has been so only purpose for the full the in- of said article was to above-named, change place parties no shall take dealing form firm of its with the liability in the incorporation of such firm or the members and that sent since the checks thereof.” appellant incorporation to the no- gave tice appellee had become It is appellee complied not claimed that it necessary comply was not with said with said Ridgway, article. William O. Jr. might ap- article. There be some merit in testified that he did not know whether his pellee’s appellant contention if actual had or appellant father notified that he had incor- express knowledge incorporation, of the porated in and that the cancelled presumed since in such might event it checks he found which were all the evi- that it intending to contract with and respect appellant dence that he had with goods question sell corporation. in being Colton, notified. Robert A. General But such was case. There was never Manager plant appellant, Houston any change in the dealing. course of The testified that he billed presumably by appellee by material ordered individual, as The Ridgway Company, telephone picked up in 1964 was from time from the middle of 1957 until middle or by appellee’s to time truck as shown part latter changed and never Ridg- invoices which also showed “Sold to style of the account that he He carried. way Company”. appellant also testified that was never noti- fied by Mr. Ridgway that he had a It cannot be said that the five tion, and that there appel- in appellant delivered to after the in lant’s which they file would reflect that ever corporation conveyed express actual or any received notification of such knowledge incorporation of the tion. is a There difference between actual knowl edge and might impose upon notice which There is no evidence that had duty one the making reasonably diligent actual knowledge incorporation of the inquiry might which result in actual knowl The Ridgway Company. The name of the edge. Ortiz, 1951, Woodward v. 150 Tex. company incorporation was the same after 75, 237 S.W.2d 286. See also American itas was before. The evidence showed Surety Bache, ofCo. New York v. 82 S.W. appellant began dealing appellee with aas 2d Tex.Civ.App.1935, writ ref. Four proprietorship early con- 1957 and of the checks issued after the tinued carry the account in the name of were in issued 1961 and the last check issued Ridgway Company The or Com- September 25, is dated 1962. The indebted pany, change and made billing no recovery ness for which sought grew company any of such at time. invoices out of the sale and delivery billing and the all indicated that Ridgway Company year in the 1964. The had no actual in- appellee’s fact signature such checks bore corporation testimony and confirmed Ridgway Co., “The Inc.” was not sufficient appellant’s plant manager. Appellee might corporation to establish that pur have concluded from the invoices and bill- chasing goods from two three ing dealing it understood was years previously. later or As hereinabove proprietorship. as a stated, change there was no in the firm name, It our view Article 1302-2.02 although “Inc.” was added to the exactly says. means what It place. states firm name on the checks Special previously words Account” terial was furnished indebtedness “— printed any question being. thereon. It shown that here came into Actual- responsible any ly requires language official had ever seen of the statute publication apparently routinely newspaper checks which were notice in a of such stamped deposit prerequisite reverse side as a to a firm release thereof. It was that such checks members. In state we not shown this record pay goods purchased by were are fact any not used unable to see that issue of arrangement presented under some between as to the individual corporation. appellants. and the did not err rendering judgment against them.” In Spolane Coy, Tex. S.W.2d So, in the instant case there is evidence *4 N.W.H., Civ.App.1941, had the defendant showing publication required of the statu under the conducting been his business notice, tory any there nor is evidence Company. Sterling name of Radio Products appellant show that had or in been notified the company incorporated under Such incorporation appellee. of formed 15, February name on 1940. On same June Appellee appellant was notified asserts Sterling person working a for incorporation by of the checks herein- Radio Products converted some agree. above discussed. We do plaintiff the de property of the who sued convey knowledge checks did not actual for conversion. individually fendant incorpora information in that he was not defendant contended they ap- appellee, tion of nor did relieve employee dividually acts an liable for the pellee statutory duty publishing of the Company,a cor Sterling Radio Products Furthermore, notice. it view that is our poration. the conversion aft Although receipt deposit mere and incorporation, the er the date impose upon appellant duty mak against the defend affirmed ing inquiry. Bank any In National First individually basis Article ant on the Flack, Tex.Civ.App., Dalhart v. S.W. V.A.T.S., 1302-2.02 from which Article general 2d a rule court said: “It is change. The court said: derived without inquiry puts party a whatever this record showing “In the absence of a the in notice, provided amounts law to provisions with the appellant complied a quiry duty, a would lead to becomes and per appellant was Article of said by of the facts the exercise Mr. sonally agent, act of his liable for the understanding.” ordinary intelligence and au Bennett, scope of his acting within (Emphasis added) Notice See also 66 C.J.S. thority, by the trial court.” as found appel 11(b), p. 646. In the instant case § Company, Triangle Supply In v. Hobbs duty inquiry under an lant was no to make h., 726, Tex.Civ.App.1964,n. w. 378 S.W.2d appellee to determine whether was still engaged in as the defendants were operating proprietorship or been as a had of Hobbs partnership the name under incorporated. Appellant selling and They attempted to Company. Drilling delivering Ridgway to The Com showing the escape by as it pany invoicing billing and them and Company under the Drilling tion of Hobbs done, always and appellee had bound Company, Drilling Inc. name of Hobbs It invoicing billing. and know of such The court said: simple appel- matter would have been statutory no complied lee to have with and intro- proof “Appellants offered a letter or otherwise or to written tice have publication of showing evidence duced no express knowledge conveyed newspaper or to show in a incorporation. informed notified or had been plaintiff appellant under- they The record shows corporation which

any way of the dealing with that was the ma- stood time prior to the organized had dealing Company, an individual. If and William O. representing the cor- the Estate was in fact Guardian of poration himself, M., jointly dis- and instead of he failed to N. C. severally Ridgway Company, fact and therefore a cor- close such with the poration. became liable to In Anderson Smith, Tex.Civ.App. 398 S.W.2d Reversed rendered. h., defendant, plaintiff Hal n. w. sued Anderson, individually, ren- for services The defendant contended that the

dered. Rehearing On Motion Anderson, owing by indebtedness was Hal Inc., corporation. The further defendant Appellee, in his for rehear motion plaintiff placed upon no- contended that ing, asserts in effect that this com Court upon the based tice ju mitted fundamental error since it lacked plaintiff fact that had received some three judgment against risdiction to render Anderson, checks drawn Hal Inc. The there appellant’s because is no evidence payment by court held that such checks did presented claim was and re not constitute notice that the defendant was jected and that suit was commenced within merely acting agent anas for the days rejected. Ap the claim *5 quoted In the tion. Anderson case the court pellant pleaded: duly “That Plaintiff did Dairy statement made in v. Nor- Saco Co. present his claim attached hereto and ton, 140 Me. 35 150 A.L.R. A.2d ‘B’ marked Exhibit for the above described might as follows: “It be that the well payment Defendant, materials for Wil check was in such manner received routine liam Ridgway, O. and Defendant William that it significance had little on the reject Ap- O. said claim.” question plaintiff.” pellee’s general answer denial contains no any special nor allegation, denial of such carefully haveWe considered the case of which therefore must be taken as true. Wood, Comstock v. 216 Iowa N. Chambers, Bauman v. 91 Tex. 41 S.W. upon by appellant. That relied case Chinn, (1897); Diaz 150 S.W.2d factually distinguishable from the instant (Tex.Civ.App.1941, h.). n. w. In Bauman v. In case. there substantial case was a Chambers, Supreme our held that Court also compliance appel with the statute and the such admitted allegations need not read lant had actual of the form in which McDonald, evidence. See also Texas capital paid participated and had Practice, 7.23,p. Civil sec. 645. appraiser as an in connection therewith. part That judgment of the Trial necessary for It was not Court which decrees that recover attorney’s present claim for fees its against Ridgway Company, 314, Texas required by Section taken, appeal from which no has been will Code, V.A.T.S., the claim was since Probate remain judg- undisturbed. Insofar as the amount. and uncertain for an undetermined ment decrees that take Parr, Tex.Civ. Boykins v. 327 S.W.2d against appellees individually, judg- ref., e., App.1959, n. r. and authorities writ ment of Trial Court is reversed and there cited. rendered that recover

against Ridgway, doing Rehearing overruled.

Case Details

Case Name: American Smelting & Refining Company v. Ridgway
Court Name: Court of Appeals of Texas
Date Published: Feb 9, 1967
Citation: 412 S.W.2d 675
Docket Number: 14981
Court Abbreviation: Tex. App.
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