81 S.W.2d 536 | Tex. App. | 1935
On July 23, 1931, Mrs. Grace Garner, without the joinder of her husband, for the purpose of associating herself as a member of a Lloyds America insurance organization, at San Antonio, Tex., executed an underwriter's agreement. On the same date she also, without the joinder of her husband, executed a power of attorney to Elliott Jones, authorizing him to act as her attorney in fact in the insurance enterprise.
On the same date Mrs. Garner, joined by her husband, in writing, assigned and delivered certain corporate stock certificates owned by her as her separate property of the value of $1,500 to Jones, which represented her capital investment in said Lloyds America. A certificate was issued to Mrs. Garner showing such assignment.
Thereafter Mrs. Garner, joined by her husband, brought this suit against Jones, as attorney in fact for Lloyds America, to recover the value of the stock as for wrongful conversion thereof by Jones, with alternative allegations for rescission and recovery of such value.
Upon trial without a jury judgment was rendered denying the relief sought.
Appellants present their appeal, seeking reversal of the judgment and rendition in Mrs. Garner's favor upon the theory that such Lloyds America organizations are simply partnerships, in such connection invoking the ruling in Purdom v. Boyd,
It is believed, however, this case is controlled by Pitts v. Elsler,
Organizations formed and writing insurance upon the Lloyds plan under the statutory provisions above cited are not *537
partnerships as that relationship is commonly understood, but their legal status is more in the nature of corporate entities. We think they should properly be regarded as insurance corporations. In re Lloyds of Texas (D. C.)
Mrs. Garner became a shareholder in the present Lloyds organization, and under the ruling in Pitts v. Elsler she cannot, upon the ground of her coverture alone, recover back the value of the personal property which she voluntarily gave for her interest in the organization.
Affirmed.