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Fireman's Fund Insurance Company v. McDaniel
327 S.W.2d 358
Tex. App.
1959
Check Treatment

*1 case trial Rather their court. tried operation their

on the theory More- damaging one.

business was to no appel-

over, showing here that there no any manner bene-

lants’ business was in Lake- Town ficial to citizens of the stated, Also,

view. have heretofore as we probative

there nature is evidence of a support judgment record to public rather appellants’ is a business private

than nuisance. foregoing con- with our

In accordance trial court judgment of the

clusions, the there extent

is modified to portion thereof

omitted therefrom the further con-

enjoining appellants from upon operation business

tinuing the which emits appellants premises of the gases, which

noise, fumes, dust, odors or peace, health,

spread affect the to and nearby adjacent using

welfare of those so purposes. As residential

properties for the trial court

modified, judgment

affirmed. INSURANCE COM- FUND

FIREMAN’S PANY, Appellant,

v. al., Appellees. McDANIEL et

Mabel ROSE, Appellant,

L.D.

v. al., Appellees. McDANIEL et

Mabel DURHAM, Appellant,

Wayne Appellees. al., et McDANIEL

Mabel

Nos. 6172. Appeals of Texas. of Civil

Court

July 17, 1959. Rehearing Sept. 9, Motion

On

§61 *4 Johnson, Stanfield, Guthrie & Dallas, for Fireman’s Fund Ins. Co. Scarborough, Black Tarpley, Abilene, & for Rose. Price, Kelton,

Strasburger, Miller & Martin, Dallas, for Durham. McDaniel, Fairchild, Center, Hunt & Johnson, Stanfield, Dallas, Guthrie & McDaniel et al.

HIGHTOWER, Justice.

This is a venue matter. It concerns the separate appeals, three captioned, as above separate from three of the trial orders court overruling separate three pleas of separate after hearings on had plea. each opinion This inis lieu of our opinion former 5, 1959, which has June been withdrawn. 9, 1957, April Mabel McDaniel and On County, McDaniel of Shackelford Dean Texas, Evelyn husband, M. Stevens and Texas, County, Nolan in- B. R. Stevens of Shelby suit in the District Court of stituted Texas, County, Fund In- Fireman’s Company, foreign corporation surance do- permit Texas, ing business under a Wayne Durham, agent of Fireman’s Company. Fund Insurance The 16,230 in the trial numbered court and is McDaniel, styled Mabel et al. v. Firemаn’s Company, et Fund Insurance al. The suit policy fire was on insurance issued Rose, company alleged L. D. cover rig against an oil the hazard of fire. alleged rig totally Plaintiffs was de- stroyed Throckmorton, fire near Throck- County, Texas, 1, 1957, morton on March recover certain conduct on in connection entitled his they are and that alleged They with litigation pending him- then policy. between amount face name self plaintiffs issued in Shackelford Coun- policy was that while the ty. were alone, plaintiffs of Rose controversy the material to at all times It is interesting observe that none of D.R. of one community survivor heirs and parties were Coun- residents of been a alleged to have deceased, McDaniel, ty at the time the The suit was instituted. part- was Rose; rig oil partner principal office and Texas residence proper that under nership property County. Fireman’s Fund was Dallas al- proceeds accounting all partnership agent, Durham, Its Tay- was a resident insur- fire policy on leged due to be County. lor Rose awas resident оf Shack- alone. to them ance are due County. elford policy The insurance ask- privilege, plea of duly filed its which the suit brought was sold to be sued ing that Taylor County. Durham Texas, which of business principal place loss of rig alleged to have occurred defendant, County, is Dallas *5 County. Throckmorton The McDaniels privi- of Durham, plea his duly filed Wayne (plaintiffs) lived respectively in Shackel- county of his asking to be sued lege, ford and Nolan Counties. County, Texas. Taylor residence privilege were controverted pleas of Both up taking Before points Fireman’s Fund’s trial court. and overruled error, of dispose we first of McDaniels’ counterpoint that Fireman’s Fund waived plaintiffs’ claim Rose denies the D. L. plea its privilege. They say: of any right, they have and that partnership of alleged to proceeds title or interest original petition “Plaintiffs’ filed was claims and policy sued on be due on April 9, the trial court on 1957. On policy himself. to proceeds of said entire April 27, 1957,appellant filed plea of its privi- plea of Therefore, subjеct its own to privilege original and its answer mak- Company Fund lege, Fireman’s ing party a subject new to the [Rose] party made a to D. L. Rose asked plea privilege. May 2, of On trial court did after which the cause appellees duly plea controverted said plea privilege of having first overruled privilege May 25, of and 1957, upon Fund. of Fireman’s hearing, full the court overruled said ' plea privilege plea to privilege filed of his as shown Rose then said or- residence, county overruling plea. his der appel- said The be sued County, open Aft- duly Texas. lant in excepted court which is Shackelford to plaintiffs later overruling plea, was filed plea this at er did not petition made original give appeal. their time notice of After amended They sought plea also. party privilege defendant was overruled on Rose damages accounting, May 25, 1957, appellant partnership sought and cussed hereinafter. him, etc., will be more On this same fully day dis- was party granted to this leave make suit and * [*] * D. L. Rose cita- filed their cause of tion D. plaintiffs making issued R. was Rose Rose, filed contro- party prayed appel- also their hini a * * * plea privilege. his lant’s verting affidavit to answer. After plea privilege, process its own Fire- was Subject to citation issued and had plea. next controverted ‍​‌‌‌​‌‌​​‌​‌‌​​‌​​‌​‌​‌‌‌‌​‌‌‌​‌​‌​​‌‌​‌‌​‌​​​​‌‍Rose’s making served on D. L. Rose him man’s * * * plaintiffs suit, al- party Fund and appellant Both * * * pleas to the effect that was filed its appeal filed notice of so estopped asserting privilege is, his appeal therefore, from bond. It shown County by plea in Shackelford virtue of that after of privilege was

3@3 appeal preponderance that Fire- the evidence overruled, notice before filed, Company not man’s was Fund Insurance appeal bond given or was agents jurisdic- representatives had general invoked appellant County, at all times material by seeking leave the court tion of repre- lawsuit, obtaining agents but that these party, implead the third transacting the actually sentatives were and obtain- such leave granting order company’s sаys impleading It business there.” process and ing service of therefore, proved. support facts were not cf this Appellant, In party. the third Engineering contention it Co. privilege.” cites Presstite plea of waived its Richards, Tex.Civ.App., 243 S.W.2d and cases there cited. the al acquainted with areWe party if a leged that venue is waived rule “represen “agency” or The words privi plea seeking remove a case on a general has been tative” as used in Sub. 27 affirmative re lege asks for and obtains subject ly held to refer to one who is plea privilege acted lief before the corporation, and authorized control of the Kurtz, Tex.Civ.App., 228 on. Whisnant v. corporate promoting to act on its behalf However, S.W. 977. that is not situa purposes in of suit. affairs and duly tion in this case. Fireman’s Fund application foreign and domestic is to subject plea filed its corporations construing alike. the words In plea privilege, filed its answer in V.A.C.S., as used in Sub. 23 of Art. pointed which it out to the trial court Supreme * * recently Court has stated: Rose, pаrty, asserting that a third “ * opinion in our the statute refers proceeds alleged claim for the identical to a situation in which the business of the *6 policy be due on the fire insurance which is, regular in more or defendant less seeking. Having McDaniels were done form, permanent actually conducted in the plea this after its was overruled the same suit, county party pos in or one which a was not waived. The error in the counter sessing powers broad from the defendant point, overrule, which we clearly is dis county, being resides in the the one instance Super-Cold closed in Stark v. Southwest ‘agency’ ‘repre that of and the other of Co., Tex.Civ.App., 402, 239 S.W.2d mand. Milligan Express, sentative’.” v. Southern overruled. Inc., 315, 194, page 151 Tex. 250 S.W.2d at 198. There can be no doubt that same Briefly, the crux of Fireman’s Fund’s meaning applicable In Sub. either points of error is: appellees case the have met the test. “(1) That the evidence failed to es- April petition, filed original Plaintiffs’ appellant tablish that agency had an agency have 9, 1957,alleged appellant to an representative Shelby or County in Shelby County at that representative in or meaning within the Arti- Sub. 27 of material, to suit. all times and at date 1995, cle (2) Vernon’s Ann.Civ.St. incorporated allegations were in These That said Sub. 27 is void. (3) That plea controverting the affidavit said Sub. has been amended or re- appellant Subsequently, re- privilege. pealed.” affirmatively following re- plied July (17) In “Since argument quested its admissions: point under its first present continuously until says: Fireman’s Fund plain- “In order for defendant, time, tiffs Fireman’s Fund In- right to have the to sustain venue in Shelby County, Texas, Company, agent has had an or Fire- surance County, Shelby man’s Texas.” Company’s representative Fund in right Insurance through May in January residence, “From (18) its defendant, plaintiffs 6, 1957, burden was on Fireman’s Fund prove by In- actions affording business for Company, doing a wider surance has been foreign corporations doing busi- County, (19) within Texas.” Shelby defendant, Insur- ness in Texas than afforded “The 23 of corporations con- into domestic under Sub. Company, entering ance has amended, (3) 1943. And resi- said article as tracts of with various fire insurance Shelby Legis- adopted by that the County, Texas, amendment Shelby dents of in years respect Texas, to domestic County, more lature than three corporations business.” as is now shown Sub. regular course of its suit, when 1532 Ver- (20) with Art. “At material to this considered all times pro- defendant, non’s Ann.Civ.Stats. of which Fireman’s Fund repre- vides : Company, agency or had had County, Shelby

sentative Texas.” corporation (foreign), “Such on Other were that two of admissions obtaining permit, shall have and appellant’s Shelby agents residing Coun- enjoy rights all privileges ty at all material to the suit. times conferred laws of State corporations organized argu- under the effect of Fireman’s Fund’s is, laws of this ment State.” notwithstanding admis- its sions, proved agents, was not Art. Corporation And 8.02 Business agency representative Act, V.A.T.S., provides: any of its admitted in such business did county; that all business done corporation “A. A foreign through may such media done have been have shall received a certificate of solely Shelby; in counties other * * than * authority under this Act shall the business admitted to been done enjoy same, greater rights but no Shelby County may havе been done privileges corpora- as a domestic * through agents, repre- there * agencies, or tion sentatives located in other than counties necessarily implies Legislature Shelby. has, effect, amended Sub. 27 so as to *7 require foreign corporation before a argument tenable. is not

Such can sued controverting be of the original petition county outside and State, residence in this having must have an company with charged the affidavit representative agent or county in representative” in the “agency an or action, where the and 27. cause or a of Sub. meaning within part thereof, must presumed have arisen have in that Fireman's is county, as is true of also domestic meaning phrase. cor- of such legal known porations. have admis made its It must be held many cases accordingly. See sions points last two discuss these to We Evidence, Digest, topic We Texas to the established- obeisance gether opinion that such admissions of the consequent reluctance of law event, support any court’s would, unconstitutional to declare statute courts finding thereon. necessary clearly only where to a decision case, dispose we first points last conten two Fund’s repealed, been knowledge, Sub. has heretofore 27 tion not, our so, However, in (2) to what extent. con Their is if in Texas. substance raised repeal V.A.C.S., either the or the constitu sidering un- Art. is Sub. 27 comparison tionality of Sub. of its meaning within constitutional provisions with those 23 pertinent clause the 14th amend- protection Sub. equal necessary. Such subdivisions are States Constitution becomes United ment

365 heret “An prescribing footnotes Act accordingly fixing set out in the venue against of suits foreign cor- o.1-2 porations, joint companies stock as- or establishing specifically Early legislation sociations, corporations acting or or pro- corporations suits venue for associations, doing business within un- or corporations “created vided that State, this provide and to mode any State, other or the laws of the der process serving corpora- on such any county, cоurt may or be sued State tions or associations. having jurisdiction this State county subject matter, any where Leg- and in “Sec. Be it enacted 1. part ac- the cause of thereof That action or a islature the State of Texas: crued, any county foreign, public corporations, or in such cor- private where or poration representative, associations, companies has an agency, joint or or stock principal county or in corporations in which or or acting associations situated.” corporation incorporated by office of this the laws of Acts, 1874, G.L., State, 14th Leg., Vol. ch. doing business within this State, p. any may be sued in court within jurisdiction having State over With such changes as indicated this subject in any county where matter incorporated Act was in the Revised Civil part cause of action or thereof Statutes of 21 of of 1879 as Sub. Texas county accrued, any or in where such any Art. as follows: “Suits rep- company may agency have an or private corporation, joint association or county resеntation in the in which company any stock may commenced principal may company office of such county in which the action or cause of situated, or when the defendant arose, thereof such cor- or in which corporation agent represent- has no or poration, company association or has State, ative in the then in the agency representative, which its where plaintiffs or either of them principal office situated.” (G. reside.” Leg., Acts of 19th 1885 modification of provision, without Such 9, p. 699). L. Vol. pertinent substance, for- carried here any pertinent modifica without This Act 1995, R. 23 Art. to become Sub. ward set out presently Sub. tion is amended, 1925, thereafter our C.S., footnote.2 courts inclined to view that said Sub. prescribed prior 1943, it be said could venue suits So be- corporations not discriminate foreign laws did both and domestic our corporations. domestic notwithstanding following legisla- foreign and tween *8 view, however, of 1885 enactment the tion: In * * * ** * repre agency a “Suits or had 1. Sub. then ” * * * * * * corporation, may private be sentative. county prin brought in which its in the “ * * * county situated; corporations, Foreign cipal in the or office is 2. Sub. 27. * * * part incorpo- public private or of action the cause in which or county arose; State, by the in or in which of and do- laws this thereof rated the may plaintiff State, ing the at the time cause the be resided within the business part arose, provided county any where or thereof the cause of in of such * * * any corporation, agen part accrued, has an thereof or action or county; or, company representative county may cy in such have an or where such * * * corporation agen representative, agency had no or in coun- the if the or representative principal cy ty office of such or in which the plaintiff situated; county may or, the the resided at when the de- time agent rep- arose, corporation no of action or thereof or cause has fendant may brought State, then the coun- coun in this then sentative ty plaintiff ty plaintiffs them, that in which or either of nearest resided where corporation time in which the at said reside.” 366 Legisla- that statements alluded to in above certain quoted

just it styled foreign Appeals place decisions Commission of and did ture intended dicta, separate purely relative 23 are obiter category to Sub. corporations ain venue such of corporations. statements are not within the rule domestic from and distinct stare decisis. this notwithstanding Subsequent however, Supreme Court legislation, our In we light foregoing, of Appeals of adopted four Commission has are agree unable that the amend 1943 substance, state, opinions either 23, conjunction ment to Sub. taken in Sub. provisions of to, appear that or 1532, supra, Arts. 8.02 and had effect corpora foreign apply to 23 continued amending repealing by impli of Sub. 27 of Water Heater Co. Pittsburg tions. cation, by necessity, or otherwise. 417, 1926, 282 Sullivan, 115 Tex. Texas v. legislature classify foreign right had the Powell, 576; Grayburg Co. v. Oil S.W. corporations separately from domestic ones 542; Texas- 354, 15 S.W.2d Tex. 118 and accord each different ‍​‌‌‌​‌‌​​‌​‌‌​​‌​​‌​‌​‌‌‌‌​‌‌‌​‌​‌​​‌‌​‌‌​‌​​​​‌‍treatment. Wells, 121 Co. Louisiаna Power There is nothing here indicate that 978; Irr. Lakeside Tex. 48 S.W.2d speak. did not intend its acts of which we Co., 1926, 116 Tex. Co. v. Markham Irr. Although we no for see reasonable basis However, careful a S.W. 593. 28 existing, not, we are discrimination study these authorities of disclose alone, reasons authorized to declare unnecessary to have been statements to repealed. statute of amended or this state Therefore, are reached. decisions we We do not consider Arts. 8.02 and 1532 authority holding that no familiar with pertinent, held, it has been think we pred present our 23 or Sub. correctly so, such nature articles foreign corporations apply to acts ecessor place corporation, foreign intend to act aforesaid since the enactment upon procuring permit to do business relating for actions state, upon footing as the same domes corporations. against foreign corporations tic in the transaction busi Allison, 1908, 52

ness. Coca Cola Co. v. Tex.Civ.App. 113 S.W. n.w.h. are not unmindful We appellant’s accordingly We third ap overrule peculiarly decisis dóctriné stare point. plicable'in statutory construc matters generally will tion. adhere “The Courts however, by opinion, We are that has been followed a construction existing reason the conflicts between long line of decisions that has stood subdivisions, foreign corporations two time, theory period of long for a on the status, Fund’s are of Fireman’s holding had not been in accord if the deprived rights their constitutional legislative meaning intent with the laws, equal equally administered. would have been statute clarified amendment, or a different rule would inequalities first note some of We enacted. When statute been has excep administration of the two venue construed, especially of final re a court the terms tions even where similar. Legislature permits sort, the fact that the Bank As was held in Victoria & Trust Co. *9 subsequent through one or more it to stand 63, 216, Monteith, 138 Tex. 158 S.W.2d v. amendment, sessions, may without be re Rogers Poultry Egg Fort Worth v. & legislative sanction garded as con Co., 165, Tex.Civ.App., a 185 S.W.2d ap And of course the struction. rule will plaintiff maintain venue a de forcibly ply more even where the statute corporation fendant domestic outside of incorporated is re-enacted in a revision county principal its office is where located change.” substantial 23, without 39 Exception prove must under he a cause Tex.Jur. 174, recognized preponderance Yet when it is of action sec. 92.

367 county corporation It is not hearing. place where the evidence on the venue had a business, exception make of or in sufficient under that which officer its chief resided, ac- proof and, cause of prima person, a if mere facie a natural Exception 27 in county tion. But under the bemay where he resides or found; to, need broadly permitted here he would not but referred any cause of any proof actions foreign corporation make whatever of be brought hearing. any Southwestern action at the venue in the state. Tex.Civ.App., Greyhound Day, Supreme state Lines v. Court affirmed on writ corporation foreign 238 258. A S.W.2d of error Supreme thе United States Court county where it has may he sued (Justice Holmes dissenting) the stat- held ref- agency representative, without ute to be unconstitutional as a denial of residence, plaintiff’s county of erence to the equal protection of the law in this lan- suit whether the without reference to guage : a cause of enough is substantial “We very plain think it up actually proved could be statutes against foreign discriminate hearing. corporations, and in favor of domestic corporations individuals, and that began to about the courts Since 1910 . the discrimination is not theoretical unfavorably afforded react to treatment merely, but real and substantial corporations and the states to domestic * * *. It does [14th Amendment] corporations. foreign denied Southern prevent adjusting state from 287, Greene, 400, R. Co. 216 S.Ct. v. U.S. 30 legislation to differences in situa- 536; 54 v. L.Ed. Hanover Fire Ins. Co. tions or forbid classification in that Harding, 272 71 U.S. 47 S.Ct. connection, require but it does that the many L.Ed. 372. There are of course au- arbitrary, classification be not recognizing thorities distinction in this based on real and substantial differ- respect, corpora- between individuals and ence, having reasonable relation to generally. tions Bain Peanut Co. of Texas subject particular legisla- of the Pinson, 282 51 U.S. S.Ct. tion.” 482; Powell, Grayburg L.Ed. Oil Co. v. Tex.Com.App., 118 Tex. 15 S.W.2d subjects there “No doubt are toas decision, Mfg. The Saunders Power corporations admissibly may Saunders, 1927, Co. v. 274 U.S. separately classified from individuals 678, 679, 1165, appears S.Ct. 71 L.Ed. treatment, and accorded different a culmination of a cases series of subjects foreign also as to which cor- equal since the extending Greene case porations may separately be classified protection corporations foreign clause to from both individuals and domestic and we believe it to be decisive of the corporations differently. and dealt with question constitutional before There us. subjects But there other as to defendant, corporation, an Ohio admissible; such a course is not doing permit business under a in Arkansas. distinguishing principle being place Its of business was in Arkansas classification must rest оn differences County. It did no business and had no pertinent subject respect office, agent officer or elsewhere in the classification which the is made.” plaintiff, injured state. The while an em- ployee corporation in Arkansas Obviously, the discrimination oc County, brought against, and recovered by the 1943 casioned amendment to Sub. 23 of, judgment corporation in Saline great our statute not as that oc County. The Arkansas required statutes This, the Arkansas casioned statute. *10 actions of character, this if a however, do- is not the criterion. The fact corporation, mestic to be brought in a that a violation the constitution is not 368 apparently it. permitting distinguishing for the Saunders reason great a one is no case, wrong pointed obtaining presumption degree of to the the opinion

A mere as to gen- were validity favor of constitution the of statutes which arise if the would erally, the petitioner measure of to the failure of the violated does not afford particularly, provisions. duty presumptions to rebut enforcing its Am.Jur. 88; conformity United 11, Patton v. p. 716, with rule in the Saunders Vol. Sec. the 253, 276, L. States, volition, 74 case. next 50 S.Ct. Of its own court 281 U.S. the 263; Looney pointed v. Crane legislative to a Indiana Ed. 70 A.L.R. scheme in Co., applicable corpora- 230. 62 L.Ed. casualty 245 38 S.Ct. U.S. domestic differing radically dealing tions from that appellees say if there ever were The corporations, favorably more foreign with case, any then teeth in the Saunders as a basis for the valid- reasonableness and Met- removed them. Brownell case (1935) ity of the statutes. York ropolitan Casualty New Ins. Co. of Brownell, 580, 55 294 U.S. S.Ct. recognition full We accord ac- involved an general 79 L.Ed. 1070. This case rule that he who the con assails Brownell, an receiver for stitutionality tion as being of a statute as dis bank, indemnity upon criminatory bond normally Indiana has the burden by Metropolitan, New York proving arbitrary executed and effect. nature commenced corporation. p. 776, The action was citing See Vol. sec. Am.Jur. years presentation of almost after three Brownell and a host In of other cases. provided that case, claim. Thе contract holding view of the Saunders brought however, after the proceeding could point no we believe that to the pres- expiration of 15 months from date of effected discrimination Sub. of our Supreme Court claim. circumstances, entation The prove it statute is to upheld validity statute Indiana arbitrary unreasonable and as a matter of policies voiding clauses in such limitation wink the law. To discrimination off by foreign companies insurance very issued on the basis of the reasonable dis Indiana, provided doing business similar facts in Brownell case is to dis period years for shorter than three entirely right for regard fundamental commencing thereon. See same one’s domicile absent below, Cir., regard 68 F.2d 481. In case exceptions contrary. clear and valid to the legis- fact that there was no similar to the by securing The McDaniels contend that applicable companies domestic lation permit to transact business Texas business, carrying on the same class of but Fund assented to be bound contrary, they were free to insеrt operate. our laws under which were stipulations policies in their reasonable They say: limitation, period majority short (four justices dissenting held the court policy question “The was issued basis that Saunders and other applicable laws, The required reversal) statute not to cases course, became a of the contract equal protection Ac- clause. violate ‍​‌‌‌​‌‌​​‌​‌‌​​‌​​‌​‌​‌‌‌‌​‌‌‌​‌​‌​​‌‌​‌‌​‌​​​​‌‍provided itself and the contract that: rule knowledging the in the Saunders case Conformity to Statute. ‘22. Terms of the ultimate court stated test of policy which are in this conflict with validity not difference between wherein the statutes state but whether such corporations, differences hereby issued are policy amended subject respect pertinent par- to such statutes.’ The conform If the classification is made. provide contract did ties’ rational rela- differences those comply conformed to with such- legislative command, tionship to the might be held to be statutes con- appeal, court, is not on some future forbidden. stitutional discriminatiоn

309 state, valid or Daniel et al. controversy our dis- to statutes of hereinafter cussed, it necessary not.” that we set forth peculiar some of his- background disposed has also This contention tory. appellees unfavorably to 490, S.Ct. 680] Saunders case U.S. [274 In 1949 D. L. Rose and R. D. McDaniel thusly: entered a agreement Albany, into written by coun- County, Texas, Shackelford “The contention advanced joint for a enterprise defendant plaintiff that the for drilling sel oil business well provi- impliedly which was to assented later partner- culminate into by re- ship. and refuted sions is answered The substance of the agreement was foreign holding that peated decisions Rose necessary towas furnish the obtaining money by seeking on; corporation equipment get started in a state permission parties business to do each of the was to be allowed thereby obligated become not to withdraw a does certain amount of funds object- with, estopped comply from enterprise on; from the monthly to live provision in the state’s to, any ing profits that the balance оf the would be used with repay in conflict investment; which is Rose statutes original for his the United States.” Constitution as soon repaid as Rose had been investment, original his partnership was the state rests with “It of course to culminate wherein R. D. McDaniel would of actions prescribe the venue own of the assets of the business and 25% the exercise courts. But brought her L.D. Rose would own the assets 75% others, must power, of all as of this 30, April the business. On 1956, dispute limitations with the keeping arose between Rose and R. D. McDaniel the United Constitution which the and each began to accuse the other of Pro- action. places on state States taking large money amounts fraudu- excepted, but cedural statutes lently, and suit Albany by was filed in Rose conflict like others when in must fall contract, for cancellation of damages, limitations.” those etc., he alleging partnership had never carefully all state and studied We culminated. R. D. McDaniel defended this submitted rules decisions federal suit and filed a cross-action contentions, support their McDaniels accounting, for an damages, etc., and said Em- case of Watson v. the recent including pending Albany, Texas, suit was at the Liability Corp., 348 U.S. ployers Assurance time of the death of said R. D. McDaniel 166, 66, 99 L.Ed. 74. are not We 75 S.Ct. Thereafter, on December alter by reason thereof to our fore- moved McDaniel heirs were substituted into conclusions. going Albany place suit in the of R. D. McDaniel. pending, While suit was and on March accordingly We hold Sub. 27 alleged partnership’s one drill- 1995, Vernon’s Ann.Civil Art. Statutes ing rigs destroyed by following fire amended, to be unconstitutional as alleged blowout of some kind. Later the the 14th Amendment United under McDaniel heirs their pleadings amended relates Constitution States Albany and made suit Fireman’s Fund corporations against foreign venue of suits Company a party to said suit Fund’s to the extent status of Fireman’s alleged since it was the insurer of said provisions with the it conflicts of Sub. petition Said amended was filedin property. amended, by Acts Art. 23 of Albany March suit on 1957and the Leg. served on Fireman’s Fund citation was March, day clarify Albany 1957. The some of the 25th an effort various In. April 1, 1957, relative trial on beforе Rose v. went to Mc- contentions *12 1957, Exception conjunction Ex- 29, had 29a in Rose jury, a on March but 27, 1995, ception each against of Art. for the suit filed motion to strike following com- reasons: grounds Fund said Fireman’s on purpose pany party only made a for was “(a) Exception 27, under which proper delay necessary or was not a and trial court held that venue main- was By April party. order rendered Shelby County against tainable in as 5, 1957, District April but entered on Company, Fireman’s Fund Insurance company Albany dismissed the Court at void, is either and unconstitutional just men- suit, grounds from the repealed, it has here insofar as April tioned, prejudice. without On applicable; Albany returned suit jury Albany “(b) proceedings The in the heirs, to the McDaniel verdict favorable suit, estoppel showing instead of later dis- in which were material answers venue, against Rose established as to en- which then regarded the trial court that the District Court of Shackelford obstante veredicto judgment non tered County acquired prior had exclusive by the judgment signed This was Rose. jurisdiction controversy be- ovеr the Albany suit on trial court June heirs, tween Rose and the McDaniel days twenty after and 1957, one month appellants’ only purpose and since approxi- jury returned and was verdict is to suing Rose suit Center mately weeks after institution six re-litigate him force the same con- perfected County Appeal Shelby was suit. troversy, on which the District Court opinion McDaniel heirs Shelby County powerless would be Appeals re- Court of Civil Eastland act, necessary Rose cannot be held the trial court versing judgment party to the Center suit within trial is case for new remanding 29a; Exception meaning of particulars. to for further Mc- referred Rose, 315 368. Daniel v. S.W.2d “(c) evi- There was sufficient independent pleadings dence against After their suit Fireman’s Fund party’ ‘necessary that Rose was a show prejudice Albany, at without was dismissed against to the McDaniels heirs’ suit present heirs filed the the McDaniel meaning within the against agent, Fireman’s Fund and 29a; Exception Durham, Wayne in the District Court Shelby County, as above noted. Exception “(d) 29a not available against Rose to Fireman’s Fund as Shelby County entеred The trial court because Fireman’s Fund not sue did plea overruling its order Rose’s cross-defendants, re- two or more as July 1957. The basis for Court’s 29a, Rose, quired by exemplified by appellant Rose’s had no cross-defendant as to such Rose points of error: following action; further even had because “(1) finding The trial court erred in sued the McDaniel Fireman’s Fund McDaniel, McDaniel, Rose, plead- Dean that Mabel as it neither heirs well exception Evelyn proved any and B. R. Stevens were Stevens nor other ed Rose, lawfully that the partners of D. L. could Art. 1995 partnership against any claim as- was of the Mc- insurance maintain venue (or set, County, Shelby there was evidence because no Daniel heirs as re- alternative, evidence) insufficient quired by 29a. findings. support either “(3) trial court erred in hold- was that venue maintainable ing erred in The trial court hold- “(2) Shelby County under venue maintainable ing Exception 4 of Art. Shelby County Rose in under impleaded Rose, may in sus- erred Fireman’s Fund “(4) The trial court him. Fireman’s Fund sustained taining estop- provides, per- This rule *13 and that Company’s plea substance, waiver of may sons against plaintiff having claims pel. joined be required to as defendants and exception to Rose’s “(5) No other interplead that when their claims are such in the privilege he sued plea to of plaintiff exposed the may is be double to shown.” was county of his residence multiple liability. exposed A defendant liability may to similar inter- Fireman’s obtain such appellees and The McDaniel pleader by points way counter these of cross claim or deny of Fund the correctness claim. qualified by that This Rule additionally contend rule and of error T.R.C.P., expressly provides our privilege which that plea of to file Rose did not him, procedure rules of con- but civil not be against shall cross action McDaniels’ strued to jurisdiction Fireman’s extend or limit plea regard to only filed such cause; courts of the State of Texas nor attempt implead him in to Fund’s the venue filed of therein. United considered actions See plea be that should such Co., Drilling Corp. Strong States Steel cause of ac- opposеd to the McDaniels’ as jurisdic- Tex.Civ.App., 272 S.W.2d tion, invoked he nevertheless reply to by filing the court of tion With that reference to the contentions produce under Rule to McDaniels’ motion plea privilege Rose’s did not reach and Rules Procedure Texas of Civil cause of action him or against McDaniels’ an- he an unrestricted thereafter filed plea by that he waived answer to his action, there- cross swer to the McDaniels’ merits, produce it motion to has to plea privilege. by waiving his was first hereinabove noted Rose held Sub. 27 of We have heretofore brought by Fund’s into the suit Fireman’s Ann.Civ.Stats., be to Vernon’s Art. original to the McDaniels’ claims answer to the that it conflicts with extent invalid it, court against of which answer the provisions of 23 of said article Sub. requested party to make Rose a was private corporations. Should relating to suit, request by was virtue of granted correct, respect be conclusions in that our 43, supra. interesting Rule It is to note expression be by would unneces- further us by was that this Fund answer Fireman’s points sary material regard to Rose’s position an not of the nature nor Decidedly, not be sus- venue could error. property in- innocent tendering stakeholder him under against tained might court court in order yet be Exception 29a. We would concerned two or more rival claim- declare which of counterpoints regarding however with the con- might to it. To ants be entitled estoppel. waiver and abatement, trary, plea along with specifically the con- generally

denied con- claimants. also tentions of both It regard to the correct Without avoid- allegations tained of confession and validity as ness of our conclusions prayed that ance and various reasons 27, Exception 29a is not available of Sub. null and policy of insurance declared Rose where Fund this answer that Rose filed void. It was to here, company, two has not sued plea Shackel- his plead or more non-resident defendants plea County. filed the one ford Rose prima proved a cause of facie action ed and plea After this privilege. was cоntro- right such defendants one of party litigants the other each of verted against such maintain such action de party become a defendant to and he had excep more of fendant under one or filed, he also McDaniels’ cause simply Nor our venue tions to statutes. T.R.C.P., plea privilege, subject under answer Rule his virtue of Af- produce. “(4) successfully having urged to the motion McDaniels’ it was Albany court at that Fireman’s ter the court had announced plea privilege, going Company Insurance neither to overrule his signed and necessary proper party nor a doing before the order so filed, plea of subject Albany to his entered, pending so-called between he then McDaniels’ him in Shack- privilege, his the McDaniel heirs answer etc., partnership, consisting County, Texas, elford in which claims prior suit plea of a sought in abatement reason McDaniel heirs the same relief parties in Shack- pending between same Fireman’s Fund *14 adjudicata, plea Company seeking they of res that now County, elford are denial, bar, County, denial pleas Shelby in in general other in the court plea of partnership. Subject insur- having of to and Rose obtained the company’s jur- also contained from the privilege, this answer ance dismissal County Fund for against Fireman’s cross action isdiction of the Shackelford court, estopped insur- policy of from rig loss of the under the district now plea of overruling litigation Rose’s urging ance. The order the matters by signed Shelby County relitiga- privilege was thereafter suit Fire- already pending before court. It should remembered tion matters of appellees in the Coun- court of Shackelford man’s Fund is one district discussion, ty, appeal Cause No. Texas and that the Shackelford under McDaniel, only court County al. D. L. Rose v. Mabel et district court is parties and jurisdiction of the

that has controversy between the entire question think We Company Fund Insurance Fireman’s plea Mc whether his to the Rose waived heirs and Rose McDaniel him against Daniels’ of action cause there on Rose’s be transferred should action, immaterial, for to such cause of plea privilege.” of plea stated, of Rose filed no as heretofore plea privilege privilege at all. The of adopt themselves McDaniels In effect the Fireman’s he file was did counterpoint Fireman’s foregoing rival attempt interplead as a Fund’s him additionally: say Fund and the Mc McDaniels in claimant drilling rig destroyed “The by fire original against suit Daniels’ Fireman’s gave rise to the cause of action Fund. In the we circumstances do not have against company the insurance was de- question before us the whether Rose stroyed said March fire on 1957. any plea privilege waived to the Mc soon as the McDaniel As heirs were alleged against Daniels’ cause of action find able to out who carried the insur- him, rather we have before us the obvious (without benefit of assistance ance plea fact that Rose filed no office), they from Rose’s Fire- made whatsoever to such cause of action. Rose’s party man’s Fund suit at Al- plea contentions the Mc his reached bany, seeking try the whole contro- indepеndent Daniels’ and severable cause Upon versy one case. motion him of action cannot be sustained. Rose, the court struck same. The regard pleading by In contention that said court struck order estopped deny April 1, Shelby venue in rendered entered him, County quote Thereafter, April as to we in full for clar- Mc- 9, 1957, ity counterpoint heirs, April the 4th institut- Fireman’s Daniel Fund. were District These contentions made a this suit Court of ed County Shelby Fund’s affidavit controverting Fireman’s Company. plea privilege. Rose’s strik- The Albany ing A pleadings great as to of their court has discretion delay and whether permit ad joinder resulted considerable not to get- ditional expense parties, heirs the McDaniel in such its decision and back matters is con ting generally Fireman’s Fund served practical based on delay fair, orderly This into court in East siderations with a view to Texas. timely prosecution appellant should disposal pending benefited and he litigation. in East now interfere be allowed to heirs’ suit Texas with the McDaniel Fire prevented contention that Rose rеap- has He Fireman’s Fund. man’s abating Fund from Coun taken position ed of his the benefit ty suit is does not incorrect. There allowed not be West Texas and should subject to be an identity parties or of prejudice position change his prior pending. matter to abate for of the McDaniel heirs.” Tide Water v. Commis Oil Co. Railroad sion, Austin,

Actually, Tex.Civ.App. the instruments as shown 76 S.W.2d ‍​‌‌‌​‌‌​​‌​‌‌​​‌​​‌​‌​‌‌‌‌​‌‌‌​‌​‌​​‌‌​‌‌​‌​​​​‌‍plea, (error ; refused) introduced in connection Eastland *15 effectively Davisson, made Tex.Com.App.1929, McDaniel never 13 S.W.2d heirs Albany 673; Co., suit party Haney Temple to the Tex.Civ. Fund v. Fireman’s Trust App. of the Austin, 1932, 891; leave place. in North the first Without 55 S.W.2d Morten, Tex.Civ.App. cross action they included their Texas v. court in Coach Co. Austin, an inter- parties, 1935, 263; petition, Benson v. as substituted 92 S.W.2d 71; party Fulmore, de- pleader as Tex.Com.App.1925, Fund of Fireman’s 269 S.W. days only ten fendant, they 82, Campbell, this Conn v. 24 and did 119 S.W.2d Tex. asking leave without before trial. Still issue cita- clerk had the court it served had Fund and

tion to Fireman’s aptly exception The rule days before only Fund six Fireman’s forth follows set in the Water Tide case trial, day would have return that so (76 page 554) S.W.2d at after trial. long “The general that in order for rule Upon at the court Al- motion properly brought one suit in court bany pleading from the such at- struck competent jurisdiction a sub- to abate tempt implead Fund and or- Fireman’s sequent suit, must abe substan- there parts pleading relating of such dered all parties, identity subject-matter, tial Company Fund Insurance strick- Fireman’s jurisdiction 1 Tex. is now settled. en, prejudice. it this without And did seq., 76, 77, p. et §§ Jur. purpose, express both in the as stated cited. But is like- there it cases order, delay prevent in the motion and rights of the wise that where the true Such in trial of the case. action parties not the second suit who were proper circumstances appear would parties to first suit are but second- question nothing to do with the has dependent upon ary rights to and Shelby County. venue in suit, parties to the first the fact of the parties to the second suit there provides: Rule 37 necessary parties who are trial, a case is called for “Before ad- prevent first suit from first will not necessary proper partiеs, ditional County abating second. Eastland suit, may brought in, parties be Davisson, Tex.Com.App., 13 S.W.2d plaintiff defendant, either 673.” may pre- upon terms the court such indicated, ; the court also at a nor in a As above scribe but not time man- lay delay unreasonably against Fireman’s trial that venue ner to found County Shelby under Sub. case.” Fund 374 Ann.Civ.Stats., and With McDaniels’ claims reference to

Art. Vernon’s Wayne agent, Mc- Fireman’s Fund’s venue reason thereof Durham, upon relied against Rose basis Daniels’ cause of County prop- That venue in proper. Shelby is that venue County such therefore was erly lay county against such in such upon sustain 4 relied of Sub. defend- under and that Durham is or more Sub. “If two finding reads: may necessary counties, party the suit so that venue suit ants reside in different 29a, one of lies him sub- county under Sub. any where brought ap- court stance is that whenever there The trial of which defendants resides.” any because are two opinion that or more defendants in parently was of the repre- brought county and suit is main- Fund had such the fact that Fireman’s such defend- agency tainable therein аs to established sentatives and an ants, necessarily may followed maintained in then such suit necessary county against any such and all also a resident company 4. parties Sub. meaning of thereto. within contrary. to the The law is well established Levens, Lines v. Merchants Fast Motor stated our We heretofore 853; Reynolds- and, Tex.Civ.App., validity 161 S.W.2d Sub. views as to the Tex.Civ.App., Perry, correct, Kimberlin Oil Co. v. should such statements be con- Somewhat Durham in S.W.2d 787. could not be sustained attention call our nection, Shelby County the McDaniels circumstances. decision Supreme Court regard recent Should we be incorrect *16 Tex., 320 Drye, S.W.2d validity have v. the McDaniels of Sub. James conten- supports their They say plead prove case and to nevertheless failed County proper Shelby tion that is Durham as would against cause of venue action County. against Shelby under rules intended to him in the sustain as to venue suits, multiplicity of avoid a since the cause Exception can apply, “Before 29a four against intimately of him action is connect- conditions must exist: action the must be against ed action Fire- with the cause of against defendants; two or more of all this Fund. do not so construe man’s We them county must reside outside the of distinguishing The to noted case. facts be suit; proper against venue must as at be are in such case two of that several defend- least one of the defendants under some suit, actually county ants resided in the of exception rule; general to the venue and proper and therefore held under it was privilege urging defendant his the must be join against Sub. 4 to the cause of action necessary party against claim the the several out of defendants with proper.” defendant whom is as to there, action those resident the of cause 4.36, Tex.Civ.Prac., Vol. McDonald’s sec. being intimately them all connected. pgs. 412-413, and there cases cited. The fact it would be convenient that more try in one that all of these cases suit and allegations The McDaniels’ of Fireman’s prevent multiplicity of suits such would liability Durham’s Fund’s are in the control the fact if venue does not alleging that alternative. After Fireman’s Shеlby County as is to Rose sustained as policy Fund is them on liable to case him it must to McDaniels’ noted, McDaniels hereinabove then al exception under some to Art. be sustained leged acted as an that Durham insurance mistaken in our belief unless we are part broker for the hereinafter mentioned privilege plea of did not reach that Rose’s nership responsible for keeping and was action. United States of Steel such cause prop partnership property insured. “Said Co., supra. Strong Drilling Corp. defendant, This v. erty was Fireman’s insured with Company. Said defend been done. Fund Insurance has not any They ess thereon. different Durham, refer two responsible ant, Wayne is recovery al- form which omitted books contain the plaintiffs’ defeat would thing that pleas. legations suggested Fund for such defendant, forms Fireman’s They responsible for authorities submit other relevant no Company, and is is being support policy their contentions. mentioned the hereinafter parties of name one defendant, only; plea The tracked partnership requirement al Durham, direct cause did was the T.R.C.P. It Wayne Rule and the lege insurance said that Durham was not resident the conditions plaintiffs’ County men of the above proximate of all on the occasions cause resident allege to be a tioned. It did him trouble and confusion.” plea, Taylor “at time way, un- Thus it is clear that there is no same,” with including filing of the pleaded, Fund der the facts that Fireman’s appellees’ all authorities to respects to the jointly be Durham liable could contrary allegations to we hold the McDaniels, jointly severally liable. or Moreover, failed McDaniels sufficient. allegations The that most Fireman’s at attention call such omissions to the might liable exclusion of special exceptions the trial court Durham, event Durham liable otherwise, held to and are therefore thus Fund is not. There error, it was. waived if such only causes alleged alternate regard In phases to the matter of what mutually which are exclusive. litigation should be transferred proof McDaniels’ case fails counties, compliance with Rule pleadings Along as well. their 89, T.R.C.P., it is the contention Fire- by them was Fund, evidence introduced referring man’s Goodrich Su- requests and the written for admissions perior Co., Oil 151 Tex. 245 S.W.2d thereto, answers substance of cited, cases suit in merely foreign Fireman’s Fund is a entirety, including interpleader *17 ac- corporation and doing business Rose, engaging tion should transferred Shelby County; agents that having County to Dallas in accordance with the Wayne agent Durham was an of Fireman’s following holding in case: the Goodrich Shelby County; Fund, that though not Castleberry, “As was said in Hall v. in Fireman’s policy the of insurance issued supra [Tex.Civ.App., 283 S.W. 581]: procured through D. L. Rose was Fund to ‘If a defendant answers either before policy, and Durham, certain terms of the ,of or after a trial the contest on his reported. These promptly that loss was the plea privilege, and of the should venue proof of a not admissions do constitute court, changed by trial or as action, Dur- proof that joint of nor cause appeal, an result in either event of against necessary party suit ham is a case, by was Judge entire as said McDaniels could Fund. Fireman’s Swain, supra in Hickman Brown complete relief to obtained the have 209], Tex. 167 S.W. as to [106 policy of in- under the entitled were over, parties, subject-matter, pleas without Fireman’s Fund against surance will be transferred to the of court Durham. joinder of proper jurisdiction. The transfer of case, however, deprive Here, any will time, not for the first the McDaniels right; sufficiency plea party legal of a will privi- attack the the case of the of originally lege though to state stand failing of Dur- filed Any to which it is at court (1) time of: ham’s residence transferred. any pleaded suit, (2) person by affected matter proc- institution of the service of Lines, answering Kelley Tex. may, in v. Central Texas Bus in a cross-action Civ.App., plea or de- cases cited. same, 62 and himself S.W.2d avail of ” by fense law.’ permitted conclusions, By foregoing reason our of suit overruling the whole orders that of trial court It contention Rose’s pleas defendants, Shackelford Fire- privilege of the should be transferred agree Company and County. completely man’s Fund do not We Wayne 16,230 Durham, on No. Cause either contention. court,

the docket are reversed interpleader was Fund’s judgment sustaining Fireman’s each is here rendered independent an Rose to against action pleas. court’s That privi properly plea which Rose filed his overrul- cause order in the numbered same lege. interpleader subject An action is the Mc- ing privilege to plea Rose’s the same rules other actions af- him is Daniels’ of action cause are, and we are now concerned with over- portion of order firmed. That par question indispensable necessary to the inter- ruling plea Rose’s Texas ties. Duval Ranch Co. v. pleader is re- action of Fireman’s Company, Tex.Civ.App., 301 S.W.2d here judgment rendered versed Fire As to the McDaniels’ claims district such action be transferred Co., only County. man’s Fund Insurance we have court of Shackelford been concerned with was whether venue Rehearing On proper Shelby County. As to Fireman’s interpleader way Fund’s ANDERSON, Chief Rose, con we have also Justicе. proper in cerned with whether venue Appellees appel and all of the Shelby County. Fund contends Fireman’s except lants Fund Insurance question should not be latter this Company Wayne Durham have sea court, re passed should be sonably rehearing. filed motions Pend for proper determination served for motions, however, they ing hearing However, County. we be Dallas courts joint motion, have filed herein their question. duty determine our lieve parties joined, all requesting their to withdraw said leave reference to McDaniels’ With the man rehearing for motions against Rose for breach of of action cause im date in issue consolidated causes agreement, accounting partnership *18 mediately. They represent settle apparent damages, it is for by agreement pend cases ment from the McDaniels’ claim is severable the mandate will ing and that issuance of Fund reason mo The motions to withdraw the aid it. his to be assert failure Rose’s ‍​‌‌‌​‌‌​​‌​‌‌​​‌​​‌​‌​‌‌‌‌​‌‌‌​‌​‌​​‌‌​‌‌​‌​​​​‌‍granted, rehearing accordingly are tions his residence thereon dismissed, rehearing motions for should severed cause of action the mandate issue it is ordered that against Fireman’s claims McDaniels’ from immediately. Shelby County. and retained

Case Details

Case Name: Fireman's Fund Insurance Company v. McDaniel
Court Name: Court of Appeals of Texas
Date Published: Sep 9, 1959
Citation: 327 S.W.2d 358
Docket Number: 6146, 6167, 6172
Court Abbreviation: Tex. App.
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