History
  • No items yet
midpage
Swest, Inc. v. American Airlines, Inc.
694 S.W.2d 399
Tex. App.
1985
Check Treatment

*1 (Tex.1981); Anderson, 685, 689 Glass v. (Tex.1980); Corso v. Carr, (Tex.App. —Fort n.r.e.). Accordingly, writ ref

Worth d

appellees’ failure to un- payments continue agreement” “services excusa-

der the was cannot be

ble and considered as termi- breach of

nation or the lease with Bandera

County. County’s pro- Bandera refusal subsequent agreement

vide a service

nothing County’s capac- to do with Bandera

ity agreement lessor under the lease County appellees. Bandera did not capacity

act in its as lessor the “ser- agreement,” merely

vices as a con- acted appellees.

tractor services with There-

fore, County’s hold that Bandera refus- subsequent agree-

al to enter into “services appellees

ments” with is not a termination Appellants’

of their lease. points of error

five, six, eight and nine are overruled.

Appellants’ point of seven is

directed trial “E” court’s conclusions “F” which concern of termi the lack

nation of the lease between Coun Bandera

ty appellees tenancy if the lease is a

will. conclude We that under terms of it is tenancy lease not a as it at will

not terminable either party at will. Ac appellants’

cordingly, point of num

ber seven is overruled. of the trial court is af-

firmed.

SWEST, INC., Appellant, AIRLINES, INC., Appellee.

AMERICAN

No. 05-83-00279-CV. Texas, Appeals

Court

Dallas.

May 1985.

Rehearing Denied June *2 and Thomas W. McKen-

Arch M. Skelton Dallas, Skelton, zie, Besing, Murphy & appellant. Good, Brin, Jr., H. David

Royal H. Kevin Airlines, Inc., Schwarte, Dal- A. las, appellee. STEPHENS, AL- VANCE and

Before LEN, JJ.

ALLEN, Justice. Swest, Inc., appeals from

Appellant, in favor of against it and judgment entered (Ameri- Airlines, Inc. appellee, American can), brought Swest in a suit based on of contract American for breach to collect C.O.D. failure jewelry shipments. Swest charges on two appeal. error on points of raises fourteen basically contend through eight one Points entering judg- erred that the trial court proved Swest for American because ment for both by American contract breach law. a matter of shipments as complain of the of error points rulings, and the evidentiary charge, certain attorney’s Although trial fees to court’s award fourteen raises error, points points conclude American. American asserts three cross- dispositive three seven are concerning points the trial refusal court’s complains case. ratification, special to submit a issue on the trial court erred overrul insufficiency alleged impropriety its motion for notwithstand damages, proof and the trial *3 ing findings the verdict because jury’s striking court’s action in coun- against of no of contract breach were declaratory judgment. terclaim for a We great weight preponderance and of the evi agree points with of three Swest’s error Although points dence. these of error use essence, seven, contend, and which that insufficiency” language, “factual the lan American breached contract as a matter guage used to characterize of a Consequently, of law. ren- reverse and controlling. Instead, procedural is not judgment der in favor of and Swest steps points which the to relate are deter in part .remand for a attor- determination of McKinney minative. Air Venture v. fees, neys’ any, due if Swest. 849, Corp., (Tex.Civ.App.— S.W.2d 578 862 1979, n.r.e.). supply jewelry a house based in Fort Worth writ ref’d Dallas, since of three and Swest’s gold sent a number of silver and complaint seven of the trial refusal court’s shipments appellee to C.O.D. New York on grant to judgment notwithstanding a Swest American, carrier, person a common to a verdict, legal we construe them to be identifying himself Scott Barter. There insufficiency points. Murray Corp. problems were no of ship- with the first two Brooks, 897, Maryland v. 600 S.W.2d 903 ments, were relatively which small 1980, (Tex.Civ.App. Tyler writ ref’d n.r. — amounts, delivery accomplished with and e.); Co., Flesher Construction Inc. v. Hau payment by made cashier’s certi- check and erwas, 202, (Tex.Civ. 491 S.W.2d 205-07 personal fied check. ship- The last two 1973, App. writ); also, no see Mc —Dallas ments, C.O.D., also priced sent were on the New York Donald v. Central Mutual Fire $48,220 $38,160, airbill at and respectively. 545, Co., (Tex. 380 Insurance S.W.2d 548 accepted payment American by ap- what 1964). We therefore them to be construe peared checks, personal to be certified asserting jury findings of no actually the bank were certifications breach contract are as a mat of erroneous forged. $48,220 American turned over the words, ter In of law. shipment 11, to Barter on November 1980 points error contends it established $38,160 and turned over the shipment to breach of contract as a matter law. 12, Barter on November In both reviewing points, “matter of law” we must instances, American turned the merchan- all the evidence in the record. consider dise over to Barter around midnight, when Systems Cory., v. Electronic Data Bobbitt closed, the banks were no at- 620, made (Tex.App. 652 622 S.W.2d —Dallas tempt verify forged writ); to 1983, checks. Precipitair certified no Pollution Con 909, Green, (Tex. dishonored, The 911 subsequently checks were trol v. n.r.e.). App. Tyler writ resulting ref’d suit American — merchandise, for the value of in which undisputed It alleged contract, fraud, breach of attempt purported verify made no negligence, duty good breach of faith question. The issue to certified checks dealing, duty fair and breach of resolved, then, be is whether American was comply with reasonable stan- commercial purported make required to sure that the jury, dards. The cause was tried before genuine and not for certified checks were which found that American breach did not impres first geries. question is a its C.O.D. contracts with trial authority Swest. The only we have sion in Texas. court accordingly entered any jurisdiction which rules found from question American. whether a directly on the verify hold duty to a certi- verdict. We the evidence carrier has a C.O.D. Lavine, Mogul v. matter check is N.Y. establishes as a of law that Ameri- fied (1928) (Cardozo, C.J.). N.E. verify can breached its contractual ease, perhaps Mogul leading lead- the checks. case, duties liabilities not, holding does as the dissent Our quoted carriers. A Texas court has C.O.D. maintains, strict on C.O.D. approval Mogul’s analysis basic collect, even when carriers for failure liabilities. Herrin Trans- duties those is the the carrier’s failure result of Co., portation Co. Robert E. Olson acceptance forged of a check. If certified An- 827-28 —San carrier, in the a C.O.D. exercise of reason Mogul writ). no holds that tonio skill, able care and fulfills its accept carrier (when purported certified check under its contract has a check allows certi C.O.D. contract verify any purported certified check ten- *4 check), fied it is not for loss. liable The shipment. payment as for a C.O.D. dered case American evidence in this shows that Judge As stat- We concur. Chief Cardozo fulfill made no effort whatsoever to its Mogul, a al- ed in contract which C.O.D. Therefore, law, duty. aas matter of payment by certified check allows lows a duty contractual to collect the breached its check, accept the carrier to a certified “and amounts due. pretense mere of one.” 159 N.E. at not a 709. that The Video argues The dissent Inc.,

Moreover, holding that a C.O.D. Frey’s Express, Motor Station v. 188 duty verify not to a carrier does have impos N.J.Super. 457 1220 A.2d would purported certified check undermine carriers. The es a on lesser C.O.D. ship policy purpose C.O.D. Video does defend Station hold “[a] The “assure policy ments. is to accepting ant which is in the business of delivery cannot an absolute carrier make shipments delivery should rea C.O.D. thereby leaving the collecting, without agents required to sonably be educate consign against to his recourse identifying charac employees Lines, Inc. Rich ee.” National Van a certified check.” Id. 457 A.2d teristics of (5th 800, 803 Corp., Plan 385 F.2d Cir. take at The dissent seems to this 1220. 1967). Appeals, The Ninth Court of Circuit only that a carrier holding to mean Cermetek, Inc., Avpak, Butler Inc. v. inspect check has a certified to (9th Cir.1978), 573 F.2d 1379 stated However, The if on its see it is void face. purpose policy as follows: behind the question not Video Station did reach generally “The seller utilizes a C.O.D. con a carrier has of whether C.O.D. he does not trust tract because either because precisely check a certified buyer or does not intend advance credit was The Video Station void the check utilizing the C.O.D. method the ... [W]hen nothing inconsistent There is face. clearly liquid he wants as seller indicates holding that Station’s between The Video sets, not a contract claim a distant purported inspect must a C.O.D. carrier insolvent, may litigious, buyer dis who be and our for facial defects certified check honest, If or all three.” we were to hold go must on to holding carrier that C.O.D. verify pur that a C.O.D. carrier need checks purported certified verify those checks, signifi ported certified we would inspection. pass which ship cantly confidence of undermine the of error points decision Our they receive cash or its pers that reversal, seven, compels a three and their equivalent unnecessary to discuss Hence, makes it do. shipments. we decline to turn to now remaining complaints. We sustain Swest’s of error assert first cross-points. American’s refusing the trial erred in court court erred cross-point the trial notwithstanding is that grant Swest

403 law), refusing special parently applying Mogul; issue on rat- Texas 159 to submit jury. We find no error in ification to the N.E. at 709. Swest offered uncontroverted court’s refusal to submit such a the trial of the sum to be collected on evidence issue, special there was no evidence since delivery goods. The carrier accept- had ratified American’s however, that Swest mitigate if damages, there is suf- unverified, purported, ance of that the debt was uncollec- ficient evidence pur- checks. When American delivered the Co., Transportation tible. Herrin did ported certified checks to 828; Lines, S.W.2d at National Van accept deposit them. This action 803; N.E. at Mogul, F.2d at willing- would count as evidence of Swest’s circumstance, though, such a the carrier verified, accept ness valid certified escape liability damages. cannot for all checks in lieu of cash or cashier’s checks. damage award such a case must However, there is no evidence that Swest consignor. reflect the actual loss to the knowledge accepted that American had goods wrong- That loss is the value of the unverified, purported, but certified checks. fully Mogul, surrendered. N.E. at 710. there is no evidence that Swest had Since argues American that it is entitled knowledge of all the material facts sur- damages, damages mitigation acceptance rounding American’s consequently according should be assessed checks, bogus not entitled to goods to the actual at the time value of rat- issue on defensive issue delivery, prove that Swest did not ification. Hernandez v. Southern Pacific goods delivery, actual value of the Co., Transportation *5 Swest, therefore, prove that did not dam 1982, writ) (Tex.App. Corpus Christi no — However, (no ages. it is established law in error trial court’s refusal to submit the burden of special raising if there is Texas that the defendant has issue no evidence it); 138, relating mitigation Gray, proof v. 558 S.W.2d 139 on all matters Jackson 1977, n.r.e.) (Tex.Civ.App. Tyler Manly Boys writ ref’d damages. Stanley Clothes — (ratification requires knowledge by princi- 482, 487-88, Tex. 259 S.W. Hickey, v. 113 pal facts); pertinent of all (1924); Beard, see also Land 160, 430 163 Hardison v. Dallas, Stigler, Title Co. Inc. v. F.M. 1968, 53, S.W.2d 57 —Dallas Inc., 754, (Tex.1980) (rat- 609 S.W.2d 756 Herrin, n.r.e.); also, 325 writ ref’d see principal acquires ification occur after Lines, 828; 385 S.W.2d at National Van knowledge). full American therefore had F.2d at 803-04. predicate only prove the burden cross-point American’s second is uncollectibility, the debt's mitigation, that the evidence prove offered Swest to prove that the actual value of also to alleged damages was insufficient and delivery less than the goods on improper damages. under the Texas law of American has not sum to be collected. actually cross-point, This is not since it any part of the record cited this court complain any ruling does not or action of indicate that the actual value which would 420; the trial court. TEX.R.CIY.P. Jack delivery was less than the goods at Ewton, 715, (Tex. 411 son v. 717 Indeed, it contends sum to be collected. 1967). argument up It is instead an the actual no evidence of that there was holding despite trial judgment court’s goods. Since American value of the any jury’s findings liability. plea its defensive complete burden on judgment court’s Since the trial would be produced no evidence on mitigation prove damages, correct if Swest did not plea, of that we must element an essential argument. shall consider this The sum to prima proof of that Swest’s conclude shipment pri- on the be collected facie Swest has damages stands unrebutted. damage shipper’s evidence of the ma facie law that proved as a matter of thus when the carrier fails to collect. Herrin sum to be col Co., 827; damages Transportation amounted 325 S.W.2d Lines, delivery goods. Lesi- (ap- of the See National Van 385 F.2d at 803 lected on Swest, (Swest) 555, (Tex. judg- Lesikar, ruled Inc.’s motion for 251 S.W.2d kar v. 1952, n.r.e.) n.o.v., Airlines, writ ref d Civ.App. ment and that American —Galveston (unrebutted case is established -prima (American) Inc. had an absolute facie law). as a matter of its C.O.D. contract with Swest to purported that certified checks were cross-point com American’s final however, I, genuine forgeries. than rather striking court erred in plains that the trial interpret the authorities on do not relevant a declar against Swest for its counterclaim subject such a harsh stan- party A atory judgment. successful carriers such as Ameri- dard on common judgment complaint has some about can. I believe that the relevant authorities complaint court of its must inform the trial require the common carrier it can assert a cross- instead objection before deprives carrying Failure to do so appeal. merely negligently not act out jurisdiction to con appeals the court of agent shipper. its duties as an cross-point. Texas Utilities sider West through eight one Irvin, Tex. 336 S.W.2d Co. that the trial court erred Swest contends (1960); v. Hol Atlantic Co. Richfield failing to find a breach of contract bein, (Tex.App . —Dal American. first contends that n.r.e.). las writ ref’d by American was shown breach of contract judgment essentially that the complaint into the C.O.D. contract entered because declaratory relief. Ameri did not include parties contemplated ship between the appeal; a notice of nor did can did not file Barter, turned over to ments would not be way the trial court of it in inform consignee, without full judgment. its dissatisfaction with charges by either cash or cashier’s jurisdiction no consequently court has however, argues, only. American check cross-point. the third consider contracts contem that whether the C.O.D. established its We conclude check payment by cash or cashier’s plated case as a matter of law. breach of contract disputed fact issue which was only was a therefore reverse and render We adversely by resolved Inc. recover from *6 stated, in an agree. I The Swest. Airlines, $86,380.00, the Inc. the sum one and four to issues number swers to be collected on the two total amount in contract did not breach its C.O.D. interest, plus applicable shipments, charges collecting payment of the C.O.D. Airlines, take noth- that American Inc. shipments. These the third and fourth Moreover, since ing from Inc. from an supported by evidence are answers attorneys’ pleaded for fees American representative that (Ver- art. 2226 TEX.REV.CIY.STAT.ANN. check, cash, accept cashier’s agreed prayed attorneys’ Supp.1985) non checks, check, money traveler’s certified in motion for notwith- fees verdict, Thus, findings parties payment. and since the since standing the orders any court would decide the agreed upheld that the trial if there jury must be the prevailing attorneys’ fees for the issue of which probative value evidence of hearing, remand party post-verdict Zaruba, 418 finding, v. support the State solely for a to the trial court this case appellate (Tex.1967), if the even 499 fees, any, attorneys’ if of the determination differ decided the issue have court would due Swest. Castillo, Homes, Inc. v. ently, Jim Walter (Tex. Civ.App. Corpus re- 630 Reversed and rendered — writ), hold that the I would no part. manded in Christi con the contract held that jury properly Justice, VANCE, dissenting. includ by which means templated payment therefore, that, check and certified ed majority' respectfully dissent. The agreement not breach American did erroneously over- the trial court holds that acceptance goods, from certified check which is a common law Barter. imposed upon common carriers. There is question present regarding no in the case properly American could ac- since fulfillment duty. of this personal payment cept a certified check capacity second in which the carrier acts as charge, the of the C.O.D. issue as to wheth- agent price an of the to collect the required er American was to make sure the goods is not a commonlaw genuine forgery check was and not a must contract, upon private is a based majority correctly be resolved. The *7 return, agreed pay Swest. whelming weight of authority modern C.O.D. fee for this service. The effect of that a carrier’s liability pick for failure to agency the contract was to create an in up equivalent cash or its under a C.O.D. American to collect a debt for Swest. shipment ais matter of contract between parties, separate the from and unrelated to agent The duties involved such an are the contract for delivery and its attendant (Second) defined in the Restatement statutory 1218-19; duties. 457 A.2d at See (1957): Agency, “Unless otherwise § Carriers, generally, 186(a) 13 C.J.S. at § agreed, agent employed to collect from an 382-83; Annot., 27 A.L.R.3d money principal goods others due the (1969). and using has a reasonable care Furthermore, the in making court stated that under in such collections accord- skill shipment, principal.” C.O.D. the carrier acts in two ance with the directions of the capacities, added). Thus, capacity being according the first (emphasis as bailee receive, transport, care for and deliver court in Video Station: check, certified the carrier is still under the must exercise agent

“An to collect a debt genuineness of the in- care, skill, in the diligence ordinary accepting before it because “the strument performance of all the duties incident forgery of the chance of deceit or was one his undertaking, and will be liable to N.E. at calling.” risks of negli- which his principal for loss However, reject imposition I would this If respect may in occasion. gence liability upon carriers in favor strict C.O.D. good faith and agent has acted stringent negligence the less standard of care, skill, diligence he ordinary Cardo- Mogul care. was written Justice except in cases where will not be liable time in the use of za in at a collection; guaranteed the nor he has greatly from that common carriers differed principal will he be liable if the himself present. Completion of the success (em- collecting” him prevented has from depends on of commercial transactions now added). phasis imposi- rapid delivery transit and and the C.J.S., Station, (citing at 1219 Video stringent strict standard tion of the 90). 304(a) at Agency, § an ex- upon C.O.D. carriers would have care, Thus, unless under this standard of tremely negative effect on such transac- accepting negligently in American acted stringent negligence stan- A less tions. Barter, check from forged certified commercially care is a much more dard of liable to American cannot be held day present reasonable forgery. Re- resulting the loss from sufficiently carriers and will commercial garding the determination of whether Thus, shippers. reject I protect would present negligently American acted in- authority agree Mogul as and would case, agree I with the court Video Sta- in the more the court’s rationale stead with tion, in the “a defendant which is recent decision Video Station. shipments for accepting C.O.D. business majority’s disagree with the I further reasonably required be delivery should stringent negli- the less statement agents employees as to the educate its policy gence standard would undermine identifying of a certified characteristics shipments. While purpose of C.O.D. However, in this check.” Id. at 1220. under- correctly notes that the majority case, nothing apparent on the there was assure that the policy of is to lying identify certifica- face of the check to delivery cannot make an absolute carrier nothing forgery. There was tion as Lines collecting, National Van without place anyone nor the instrument to when the contract between holder, else, subsequent as a on notice such that the carrier expressly states and carrier forgery. TEX.BUS. & COM. See check, cash, may accept cashier’s (Vernon 1968). ANN. 3.304 CODE § check, money order as check or traveler’s Therefore, I hold that American was would in this case held payment, as the forged certi- negligent accepting not did, majority does fact and which Barter. since have fied check from shipment is fact that the dispute, the mere agent unless the either already stated that carrier to act require the does not guaranteed negligent by contract or insurer of the guarantor as an absolute payment, of which the collection accepts and “collects” payment if it evidence, I hold that there is no would under the approved in a form carrying properly in out American acted clearly carriers contract. Common carrier, and therefore duties as a C.O.D. *8 A accept this role. C.O.D. unwilling to be with did not breach its contract Swest shipper to act the merely requires contract forged check. accepting the and negligence reasonably' and without “cash on delivery,” not obtain along with relies on on majority, The “collect ship- If the American did. Lavine, delivery.” 247 N.Y. 159 N.E. Mogul v. it receive cash that to insure (1928) per even if the wishes proposition the shipper the between the contract accept payment, the carrier to contract allowed whole, provide jury and carrier can so cash is the the directed to irrelevant issues only acceptable and payment negligence, thereby confusing, means of of mislead- thereafter, negligence ing, misdirecting under the standard jury, and the result the care, if accepts being of the carrier other error. Specifically, reversible payment, complains special dealing of the carrier not have the means will issues and, thus, reasonably prudently negligence failing investigate acted and with to majority, held may background be accountable. The the of were financial Barter however, un- unnecessary, jury, probably states that in order avoid misled the to dermining shipper’s improper confidence com- in the rendition of an resulted contracts, acting disagree. mon carriers under C.O.D. verdict. I shipper absolutely the must be liable for error in of an Generally, the submission collecting payment equiv- in cash or cash findings jury issue is harmless when the on This is an to alent. standard unreasonable support are sufficient issues to impose modern-day negli- The shippers. judgment. Houston, Boatland Inc. v. gence of care undermine standard will not (Tex.1980). Bailey, 609 S.W.2d contracts, policy underlying C.O.D. exists, An exception general to this rule require reason- will instead carriers to act however, erroneously when submitted ably with within terms of its contracts or jury. issues confuse mislead the Id. at collecting from shippers payment consignees. jury’s negative special answer to the Finally, majority requir- asserts that issue whether as to American had breached ing a carrier who enters into contracts was to sus- sufficient verify purported contract all Although tain the in its favor. genuine as impose checks does strict dealing negligence the issues with Swest’s upon majority the carrier. The may erroneously have been submitted insists, rather, duty that the has a the method submission been have verify all certified checks in order to confusing jury, showing there is no carry out duties under con- the C.O.D. into they were confused or misled tract in reasonable prudent manner answering concerning the issues Ameri- under the circumstances. this hold- negli- of contract can’s breach require all carriers common issues, gence especially as the breach purported given all certified checks were Ac- contract issues submitted first. believe, any shipment. I I would hold that the cordingly, submission stated, previously I have that this erroneous, issues, if negligence of carriers, upon too harsh common and, accordingly, overrule harmless error regardless of whether of care through nine points of error twelve. shippers owing negligence labeled thirteen, In Swest contends point of liability, although strict I believe the on a rulings court’s erroneous that the trial imposed by majority of care more close- evidentiary matters amounted to number Accordingly, ly resembles the latter. I dis- first disagree. error. reversible agree majority overrule with and would allowing the trial court erred in argues that points through eight. Swest’s error one evidence, over to introduce into Although majority unnecessary felt it testimony of objection, Swest’s Swest’s error, the remaining points to discuss identify investigate the back- failure to upon my disagreement based the ma- customer, ground financial status of its jority’s holding points error one Swest, however, place cites no Barter. through eight, I will also address objections were where these the record remaining points of as Ameri- error as well therefore, made; appellate it has waived cross-points. can’s Kropp v. these contentions. review of twelve, Prather, through of error nine n.r.e.); May v. ref’d charge, —Tyler as a writ Swest contends that the *9 Underwriters, as payment ship 170 S.W.2d cashier’s check in C.O.D. Consolidated ments. The refused Worth court to admit the —Fort w.o.m.); tape employee because an ref’d TEX.R.CIV.P. of Swest’s who writ deposition gave his on behalf of Swest Second, it claims that Swest was deposition failed to amend his which stated permit court to American to for the trial any that Swest not recorded conversa evidence, objection, Tar- introduce into over tions with American. Swest contends that 66, 30, argues iff Rules and 34. Swest recording actually by since the was made fair it did not have notice that American secretary the and Swest’s counsel not exculpate going to limit was Trostel, Mr. who on of spoke behalf Swest indemnity exculpatory the and because the deposition, negative then his answer by agreements supplied on the airbill question, you any to the “Have recorded conspicuous not be- American were and with conversations American Airlines?” inclu- cause Swest did not consent to their true, and duty was he was under no to argues in the sion contract. refuse, however, amend his answer. to were be- properly the tariff rules admitted subpoe a draw such distinction. American they by incorporated reference cause were Swest, naed which then selected two em pre- the in Swest’s own exhibit of airbill behalf, ployees speak to on its one of whom pared by agree American. I with this last Thus, Trostel spoke was Trostel. behalf contention. deposition. party in the A is of Swest by supplied theOn back of the airbill duty supplement response under his American, heading “Conditions deposition upon if he obtains information Contract,” ship- of is the notation that the re of which he knows that the basis carriage subject is to the accepted ment sponse, though complete and when correct in ef- governing and tariffs classifications made, longer complete no true and law and fect and filed accordance with is mislead the failure amend answer inspection by parties are available for Thus, Swest, ing. 166b. as TEX.R.CIV.P. incorporated and are into made lawsuit, sup had a party to the of the contract. Tariff Rule 30 lists the Trostel, repre of plement the answers when American will be various situations to whether deposition, in the sentative exculpated liability, from and Tariff Rule recordings any tape made whereby 34 is an clause indemnification with American because other conversations severally consignee jointly knew of the re representatives of Swest to the carrier for its liable losses accept argu cording. I refuse to applicable tariff or event violation Trostel unaware of ment was that because shipper. Although default by any made recordings any tape specifically listed provisions were Swest, Swest was then representative airbill, clearly noted on the airbill it was supplement the answers under no subject C.O.D. contract deposition his taken on Trostel in given by by entering applicable tariffs and that into Acceptance of con behalf of Swest. impliedly consented to the contract Swest supple render tention would tariffs, Since the there- their inclusion. in which cor meaningless in cases ment fore, incorporated by reference into were representatives was poration several contract, evi- introduced into which was supplemental answers Since no involved. Swest, I no in their by find dence imposition given were by the into evidence court. admission discretion broad sanctions was within point v. Cessna Finally, under this court. Smithson contends of the trial See (Tex. 439, 442-44 Co., re- error that the trial court erred Aircraft that the 1984). I would hold Accordingly, evi- fusing to it introduce into permit an abuse tape was not recording made the secre- exclusion tape dence a court, thus over by the trial rep- discretion of American’s tary for Swest’s counsel thirteen. of error only accepted cash or rule resentations *10 error, In its final attorney’s in contends fees defense of Swest’s that American negligent was not entitled to attor- lawsuit in because Swest was ney’s fees under failing either TEX.REV.CIV. investigate background. Barter’s (Vernon Supp.1984), STAT.ANN. art. 2226 In support of its contention costs also Tariff indemnity or Rule which was the fees, attorney’s include American cites incorporated by clause reference into the Mundy Compa- v. Knutson Construction agree. C.O.D. contract. I (1956), ny, 156 Tex. 294 S.W.2d 371 in American it is entitled to which a contractor sued a contends that subcontractor attorney’s damages. performance given recover under article for A fees bond recovery attorney’s by which authorizes the subcontractor stated that the sub- repay fees suits “founded oral or written contractor would the contractor all contracts.” American contends that this expenses prosecution costs and incurred in language appli- does not limit the statute’s any suit or suits on account of breach of cability to suits for breach of contract and contract. The held that the court contrac- prevailing party, plain- thus allows the be it attorney’s prosecution tor’s for fees defendant, attorney’s tiff or to recover case was under the recoverable bond. disagree. fees. I Mundy clearly distinguishable, is how- general rule, attorney’s As a fees are not ever, from this Tariff case. Rule 34 does adversary recoverable an unless any language entitling contain such expressly provided by by statute for or expenses American to its prose- recover for parties. contract between Bray cution of a breach of contract and in fact Curtis, 544 S.W.2d 816 —Cor- rights limits its to indemnification to inci- pus n.r.e.). Christi writ ref’d Article involving by dents shipper a violation 2226 has been construed authorize an of the tariff or by rules a default attorney’s award fees actions found- shipper anyone or connected with ship- contracts, ed on oral or written without ment. There evidence is no of a violation strictly limitation to suits breach of by Swest of a tariff rule and American Waldrop, contract. Ellis v. itself maintained at trial that there was no 1982) aff’d in (Tex.App. Worth —Fort default of the I shipping contract. grounds, other part and rev’d would hold American is not entitled to re- However, (Tex.1983). in- Ellis attorney’s cover fees virtue of Tariff contract, conflicting under a claims volved I Accordingly, Rule 34. would hold that distinguishable from the circum- which to attorney’s is not entitled fees in this case in no such conflict- which stance under either article 2226 or Tariff Rule 34 nothing I find claims were filed. and, therefore, I would reverse and render attorney’s authorizing an award statute nothing attorney’s that American take case, and, thus, an to American fees fees. between the of the contract examination to determine if necessary in order parties cross-points, one of its American con- attorney’s fees are authorized. tends the court in striking erred its coun- Tariff Rule was incorporated declaratory terclaim for a judgment that it into the shipping contract reference, was not liable contracts and for provided shipper and consignee attorney’s fees. TEX.REV.CIV.STAT. liable, would be jointly and severally, (Vernon to ANN. art. 2524-1 1965and Vernon indemnify the claims, carrier for all Supp.1984). dam- American contends that fines, ages, costs, or charges other incurred counterclaim have properly formed by the carrier as a result of violation of another recovery basis for its of attorney’s the rules applicable contained in the disagree. tariffs fees. Liquor In Texas Con- by any default of the trol Board v. Canyon Corp., Creek Land anyone shipment. connected with the (Tex.1970), 456 S.W.2d 891 the Texas Su- Thus, American preme contends that Swest must general Court determined that as a indemnify it for investigation costs rule “an declaratory judgment action for pending, be entertained if there is

will not filed, it is another action or

at the time *11 parties and in

proceeding between the same adjudicated in- may be the issues declaratory in the action.” Id. at

volved counter- All the issues in American’s

895. capable being resolved under

claim were American; there- action

fore, trial court’s of the coun- dismissal proper. Accordingly,

terclaim this cross of error.

overrule points previously discussed herein appeal and thus dispositive of this

would be remaining address American’s

I will not affirm the

cross-points of error. I would and reverse and render in

part. INDEPENDENT

GREENVILLE DISTRICT, Appellant,

SCHOOL INC., EXCAVATING, Appellee.

B & J

No. 05-84-00423-CV. Texas, Appeals

Court

Dallas.

May 23, 1985.

Rehearing July Denied notes express implied, which the carrier impression that this is a case of first option. enter into or refuse at its Id. Regarding Texas. this issue I must dis- Lines, 1219. National v. however, Van Inc. Rich pute, majority’s statement (5th Cir.1967); Corp., Plan 385 F.2d 800 Lavine, Mogul v. 247 N.Y. Lavine, (1928), Mogul 247 N.Y. decision, N.E. v. 159 N.E. a 1928 New York (1928). interpretation only authority is the is con- relevant from jurisdiction C.O.D., subject. on this sistent with the definition of Video Station Inc., Frey’s Express, Motor delivery.” N.J.Su- is defined as “collect on These (A.D.1983), per. 457 A.2d 1217 deals import letters the carrier’s to the virtually with a situation identical to the consignor goods to collect the cost of the present Supreme case. The Court of New and, collected, consignee from the if not Division, Jersey, Appellate ruled on the is- goods return consignor. to the sue of whether a carrier breached its duties (5th BLACK’SLAW DICTIONARY233 ed. under the by accepting C.O.D. contract 1979). The terms of the contract in Video forged only certification on a check. The simple: Station were clear and the carrier discernible difference between the two agreed goods consign- to release the cases is that in forgery Video Station the only upon receipt ee of cash or a certified easily requi- ascertainable because the check and to remit either the cash or the signature site of an certify- officer of the shipper, certified check to the while the ing bank was absent from the face shipper agreed pay fee for this check, present case, while in the the for- service. The court stated that effect of gery readily was not discernible on the face agency this contract was to create an in the of the check. shipper. carrier a debt for to collect present The terms of the contract court, Video Jersey Station New case, jury, as found allowed Ameri- although ultimately held that the defend- Barter, goods can to release ant accepting was liable for forgery, cash, receipt consignee, upon cashier’s refused to liability upon strict check, check, check, or traveler’s carrier but instead held it negli- liable for order, money remit gence. The court stated that the over-

Case Details

Case Name: Swest, Inc. v. American Airlines, Inc.
Court Name: Court of Appeals of Texas
Date Published: May 16, 1985
Citation: 694 S.W.2d 399
Docket Number: 05-83-00279-CV
Court Abbreviation: Tex. App.
AI-generated responses must be verified and are not legal advice.
Log In