Case Information
*1 OFFICE OF THE AlTORNEY GENERAL OF TEXAS
AUSTIN
Ban. R. 0. wetem, Carualty Comalsrion8z
Bwrd oi Inauranor Cohmi8rlotmrr
hetin, Ttrss
bru 81r:
This will no pt Of YOUr 18tt8r ach two rp8ohm
of January 18,. 1940 on a8 wheth8r or 18a88 (LglWW5eltt8. +O ilOt 8UOh 8@U8me 8 beill em8
888Ontial t0
full in order 8 OFiniOn 81aJ be
and agreement 8ntem.a iat0 , by aad botwm , In aoneldemtlon o? the mm of
ml, f%r8t payment being au8 lik0 aBoUt ULa dU8 the oe8tie, month until thir aontrar ; ~~~~:a~(t~~=~~~~~o::h~$~~ !%aiift"r
l'8Oti1 Or JWOfe88iO!Wd U8*.
"Now, oompaay a008 hrrvbt oonrey tltlo of the abovr ear to John Do., awin& th8 term *2 Hon. 8. 0. Waterr, Caanalty Comalaeionrr, Page 2
of thi8 OontmOt. It ir heroin agreed thi8 oontraot may be terminated by thlrtr day8 notloe by either party, an4 it 18 undsr- rtood that upon termlnatlon 0r thla oontraot, title of th8 above car autometioally rsvert8 Yotor Company nithout further baok to oost or damagsr on the part of either party, exaept wherein the above oar nay hexa been wreaked or daxaged rhlle in the posesssion of John Dee, his hblr8, or a8sigunr. It i8 aho understood that the extent of damage aolllslon llabllitp on the part of John XXI will be a mxlmun of $50.00.
%herea8, the oompany Is furnIGhIng thle oar to John Doe in aon8lderatlon of the a?,we stipulated paynent8, it la undsr8tood by both partles that thir oar 18 to be 80~ rloed without oost John Doe wlth the ex- aeptlon oi the aMote set out $80.00 damage liability, and his gasoline or fuel axponse.
-It is herein agreed thnt John Doe will fUrnl8h the oompany with knowledge or certl- floate to chow that proper publla llabillty and property daraqe lnsuranoe 18 oarrled, and that he 1s to proteat the oonpanp from any dmage suit a?idng Out Of 001:181OA OF OOlli8iOIl8 whorein this car Is ooncerned during ter- alnat!on of this oontraat md while in possoes- Ion of hlmaolf, hi8 holra, or a88lgU8l *This aontraot entered Into thla s 1940.
Rotor coopmy John Doe Aaoeptsd" Aaoepted No,. 2
=S”A?R OF TEXAS
couN?!i OF BUNK *3 Hon. R. 0. \?nLta?8, Casualty Commlaaionar, Pago S
[0] a oorporatlon of Bla~,Bf~rfc County, Tbxa8, faaeor and
Blank county, Taxac, iaaaa8, agrea tha toi: lowing tS?LU8 Sad oonditlon8: :rema w pay so
*1. _ month b,&m ~~"'~na~~~~~ day ii;aah 1940, for which monthly~$mnt aal=o; &?Sa8 and a098 hereby lease unto the 88ia bs8aS the following described notor vahlola, to nltt
n Year coda1 +otor No. Serial No. - to be used by said Leaaaa the aama a8 though It W8H hi8 own. It IS l greed that the leeor in no way raSSiVS8 t!;a aontrol o? tha as? other than horain 8pcoifioally oont?aotad and in no aauuar eaauma8 any llabillty ?or the nagllgenca of tlla h813SS or hi8 agents.
“2. Said f.eaoea 8hall obtain, in a good and reputable lnauzanas ooupany, pay for, and keep In force a public llablll~~ ~au?a~an$o- licy (mlnlmua coverage 8
property damaga (mlnlmuta~mga a- )*on said Rotor vahlala and aala Tall be naasd a8 one of the ao-Insured. m8mrva8 the right to ahanga
*FL o? 8ubatlwy oar oi llka type ior the one daaaribad harain, whaxevrr it feel8 that It [18] to the boat lntaraat of dither party.
v%' Ieaaaa agrees to furnish, replao- repair ail tins and tubes without regard to cost or dauage to aam, and will furnish liocnse, wash, lubrlaata, repair and do all things naoaaa- ary for the proper malateuanae aad rapair oi the above dasorlbed oar or Its substitute, So long aa thla ooontraot remain8 ln forea, rrubjaot to all other provlalon8 of thl8 eontrsat.
-5. It is agread that all rapal? work [18] *4 Hon. R. C. ::atara, Casualty Ccmlaaionar, Taga 4
be dons by Lessor or SQnaona of Its own aalac- tion and that Lo&sea will pay for any damage dona to wld above daaarlbad motor vehicle when such damage is cauead by the application oonm external foroe, exoepting ordinary wear and tear. It ia a reed hmavar that no repair bill ahall xoeed ti 40.00 for any ona acoldsnt and that aaid laa8or will do said work at coet plua 10% talc Leasea agrees to present tha car
“6. at the service departLent o? said Lemaor at least once eaah month or eaah one thoueand ~llea, whichever happana first.
*‘I. In oaee of eqina or ether trouble of ?%mk County eaid Ieanae agrees to outside cull Lesaor st Lensor’o expense and rec(ilve inotruotiono (1~ to what to do with said rotor vehicle.
“0. 31s contract my 5e taminated by the Leasac! et the and of any thirty day period provided L,he c::r la returned tc said leouor at its place cf b%ir:ess in 9-ank, ‘lexaa. the contract
%e.id leemr my terchuate at any tine by t&lnc at the end oi any thirty posseaeion of the car
day pericd or If tarrzinated duAring a thirty day period then 8aid the pro-rata Lessor ahE renit to the Lessee one thirtieth of the current month’s rate, if paid, or i? said Lessee fails to rcaka payP,ent aa provided, said Y,aaaor nay tominate thla oontraot.
“9. Said I.eaaaa hereby aaraea agents OS said Lessor nay enter loaaee’a premises or such other plaaa aa such motor vehl- ale Eight be found and take posaaaaion oi said mtor vehicle, and Leases apaoliioally walvaa any claim for dSEagSa as a result 02 said Laaeor or lta agonta taking (with or without paraiaalon at Said Laasea) motor vahial8 daaoribed above or it a aubetitut8d motor vahlola, upon the iall- ura of the Lemma make payment of any monthly *5 Cnsualty &mrlseianer, Tage 5 Hon. 2. C. Yoters, payment or to return the car to the Issaor . _ upon its requesr.
“10. Thle oontraot le subject to rollawing epeolal oondltione supsraedlng any omdltlone herein stated to the oontrary.
WSlgnad and exeou?ad this - &Y Of A.D. 1940.
Lessee . Lessor
Tou desire to know If auoh contraota are In violation or that portion of Hmee Bill PO. 626, Seatlon 1, .iOtS of 1939, of the 46th l.ep;islature (Sec. Bb of Article 40591). reading:
"it shall he the &uty ol the Ccmfssloner any oorporatlcn, peracE, firm, asso- to require oiatim, local nutuel aid assaclctlcn OT any looal aoaocletim, cor.rany m or~~nlzetlon, to have a aertlPlout~ authorlzed of authority hef9re beIn%
tc carry on any Insurance business In this State. Ii, in any event, any such OOE- wny, person, f:%, assoolatlon, corporation, looal aid aoeooiatlon or local o~anlzatlon Ia nritim any fom of irmmnoe rrhatsoever without a perr*lt, or certlCloate of authority issued by the Departnent of Imu?anoe OS TexaB, It shall be the duty of the Comisnioner to sake known aald raot to the httorney General cf tba State of Taxas, who 1s hnrehy rnqulred imtitute proo8edlngs in the District Court of Travis County to restrain mch ~aryvatlon, person, firm, assoclatlon, aor!:any, loon1 aid asfioolatlon or oreanlzation iron arltlntc any lnaurance of any kind or charactar without pemlt.”
Insurance has been defined aa ‘a contract by lndemlfp another against whloh one party undetiakea tram an unknown 1088, damage, or llablllty arising *6 Hon. R. 0. Vlater8, Caeualty ~ommlsalonar, Pags 6 Another more unlveraallf aooeptad ooatiogrnt event.” deflnltlon 1s:
*A oontraot of lnsuranoe ie an agreement by whloh one party, for a oonslderatlon, pro- mises to ap mane7 or It8 equivalent or do some aot of ra P ua to assured up00 tha deotruo- tion or Injury of mnethlng in whloh ‘;ho other party has an iatarest.”
Sucjz definitions are aited in Yolwna 1, Cooleyst &loCs on insuranoe, page 6.
Ve are fanlllar with the line cf oaem8 dealing 35th autoro??lle clubs to nU.oh you xake referwoe. A=w thCSe iS the case Of I:EtiOctIl diltb Service .:Orp. 78. Sate, 5s ST 2nd. 209, a:nT the &as cases th?reln oited.
In the cmc cf Fatlcnal i.utc 3ervice Corporation, surra, (writ oi error rafu.=Jed), the juC,y.cnt of the trial court ?orfelt.ini?. tb!n ctarter of the named conpany was up- held. The corporetlmi ?.?corporr.teE aa ai1 automobile Wllll ol:b 91- cf firtials (without. t:l%??r,?ity 1302 of [7216] ?:t?vired Civil tC Fits iZ3UxWXe statutes. ) :Aaier 8Ub-division The Insua3 to corpzatlm its mzbsrs a cerLiiioate which pro- vided, anon;J ofhcr thines, for annual dues of t25.00 and provided such co~r%?,?y wculd Cause to be repaired in Its I-evbc;rehlp garages eurinc the cuxent react a;?g dmage to membere* nutorotiles caused by acclde3t oi net less than t7.50 nor 12rc3 than 5250.00 &.imay,ea. Suok oontraot elearlg creetec? an obllcction on the part cf the automobile olub withti the purview of the aooepted definitions lnsuranco and we do not question the correctness cf the holding in this and stifler came.
We have carefully examined instrun?ents tsn- Pefert1n.g to the flrat of said lnstrwxents, we note dered. hssor an attempt to transfer tltlo from the eo-called lessee. Construim the vkole of the c.ontrtct, however, we neaessarll~y conclude tth t su0I.i lnstment remtins lease e.greernent and the paraIxunt titib to tl;s vehlole A contract nuot be oonstrued by remains in the ieseor. lte purpose, effect, contents azuI import, and not woasaarll~ used. Kationai Auto t‘ervico Corporation by t~ta~;minology VI. , su?ra.
?ha oeaond lnatruaant doa not pwport .to trano- ic and lo, tbamrme, a rlxple loom oont%aot. title Thu f lrot oonttnot aontain8 a provision that, in event of l oeidrat to ths nutmob in quaetion and Uonaga thsrato the ztont of tho luesoo’r llabfllty fat The rsoond oontruot proviidas mob esmlrrgu rib be !KbOO. 8 that the extent of the leesso’r liability for Ulmllar dam- l tg till Rath of auah oantraots fu* br #40,00. prorlde the l xobae of the dmage will bo borne by the thw that lmlaor. It feature of sash of suoh oontraot8 ir thla whfah &van rise to the question at wbthr cr not ierumoe of tho oontraots oonotltutes the otWyin(; on of an lneurano~ buulm8r.
ve rind no Texas suthoritlsa to citr he~la. It was held in the cam of Ee Plrs Gm?tif’loate, 39 I%. Co. Ct. US, oited in 8S A.L.R. 732 that 0 firs oertici- cafe lauued by (I leaaor OS a ohnttei, b9 wkloh l~snor agree6 that, in oaae ot injury tc or dedruation ot the oame by fire, ha till restore the haze ta the oondltlon la whlah it wap. br.fors the rim, io not a oontraat of lasu- @no0 wher8 the DB~:O BOCfXGFl3ni~S and if3 K:Ede W part Oi oon’-saot of leuae, dthin the cou:..ir~ of 8 6tatUte prohiblt- C? aoooclcctlon iron isc,u:nc: inn an9 parrron, pwtnar~hlp, any pdliuy or Y8ki.w a coJltmot of inQcler?nlty G,~tlxst loas without suth~ltp by firs, sz3weso39 oonferred by t: aknr- ter incorpor0tlon. ‘f?ls twtr in tht- above cltad oam cltfrr traz in the instant oatae only in thut In tho oltad ouse those tborv *OS an s~remant on the part of fe~bor to aamws ffla lose_; whereas, we hem have a0 agFe*cent by the lenno~r to a amme l portion of the lees by $&Q&&i&.
Ko believe that the aontraota subalttetl oannot &efinlt:one be brcuqht within or imurence hcrela prr rented and thet the abcre oa6e ig oontrolling. #Je neoeaB- thr! grudmate, nrlly oono1ude sad the basis c? yc.ur mquest, era net ruot: an oonatltute the ki::clr onfpgod .‘I in the ?nm?tmoe buslnml).
YCUX-6 V0l-y t,rJlg