Payton v. Hurst Eye, Ear, Nose & Throat Hospital and Clinic

• Decision Date: 28 October 1958
• Docket Number: No. 7076,7076
• Citation: 318 S.W.2d 726
• Parties: Dr. C. W. PAYTON, Appellant, v. The HURST EYE, EAR, NOSE & THROAT HOSPITAL AND CLINIC et al., Appellees.
• Court: Texas Court of Appeals

Page 726

318 S.W.2d 726

Dr. C. W. PAYTON, Appellant, v. The HURST EYE, EAR, NOSE & THROAT HOSPITAL AND CLINIC et al., Appellees.

No. 7076.

Court of Civil Appeals of Texas, Texarkana.

Oct. 28, 1958.

Rehearing Denied Nov. 25, 1958.

Henry T. Atkinson, L. F. Burke, Longview, for appellant.

Kenley, Sharp, Ritter & Boyland, Will C. Hurst, Longview, Thompson, Coe & Cousins, Dallas, for appellees.

FANNING, Justice.

This is an appeal from a temporary injunction. The Hurst Eye, Ear, Nose & Throat Hospital and Clinic, a charitable corporation, and Genevieve Hurst, individually and as Independent Executrix of the Estate of V. R. Hurst, Deceased, on May 17, 1958, filed suit as plaintiffs in cause No. 30,277-B in the District Court of Gregg County, 124th Judicial District of Texas, against Dr. C. W. Payton as defendant, alleging in effect: That the said corporation clinic owned a certain hospital with certain clinic equipment, supplies and optical records in Longview, Texas; that defendant, Dr. C. W. Payton, was formerly employed by the clinic but that such employment was terminated by the plaintiff corporation on May 17, 1958; that defendant Payton was asserting a claim to an interest in alleged good-will, records and equipment of the clinic of the corporation and was also asserting some character of claim to the right of purchasing the alleged good-will, records and equipment of the clinic; plaintiffs further alleging that defendant had no interest in alleged good-will, records and equipment belonging to plaintiffs and had no interest in or ownership of any of the equipment, supplies and records located in the building of the clinic, that in the past Dr. Payton had taken in his possession certain of said records, or had copied same, and that plaintiffs feared that defendant would take and destroy said records which records had a value in excess of $500; and further alleging that defendant Payton 'is and will be a trespasser on the premises of the Clinic having no lease, or right to lease and that his presence on the premises of Plaintiff will constitute and constitutes an unwarranted interference in the business of the hospital and the affairs of the Plaintiff corporation; that Defendant shall have no right to the use of the name, location or records belonging to Plaintiffs. Plaintiff Clinic alleges that the Defendant has certain checks or monies in his possession belonging to the Corporation and that he is indebted to the Corporation in a sum in excess of $500.00 and the Corporation requests a full accounting.'

Plaintiff Genevieve Hurst also alleged that all of the records and good-will were owned by Dr. V. R. Hurst during his lifetime and that the clinic never owned any part thereof and that the clinic had no authority or power to sell or otherwise dispose of any good-will owned by Dr. V. R. Hurst at the time of his death; that Dr. Hurst died December 7, 1957, leaving a written will which had been admitted to probate with Genevieve Hurst the duly qualified and acting Independent Executrix of said estate, with the said Genevieve Hurst owning a community one-half interest in said records and good-will of Dr. V. R. Hurst. Plaintiff Genevieve Hurst further alleged upon information and belief that the defendant was threatening to and would use the name of Dr. V. R. Hurst in the practice of medicine in Longview, Gregg County, Texas, and that he had no right to use such name. Plaintiffs further alleged in effect that they had no other adequate remedy at law, that irreparable harm and injury would result to them unless a restraining order be entered enjoining the defendant from the various acts and things set out in detail in their power. On May 17, 1958, the trial court (Hon. Sam B. Hall, Judge of the 71st Judicial District of Texas, sitting in the 124th Judicial District Court by virtue of an exchange of benches between him and Hon. David Moore, Judge of said 124th Judicial District Court) entered a temporary restraining order outlining in detail the various acts and things Dr. Payton was temporarily restrained from doing, until a hearing on the temporary injunction set for hearing on May 26, 1958.

Defendant Dr. C. W. Payton on May 19, 1958, presented to the trial court his petition to dissolve the said temporary restraining order and requested a hearing on the matter for May 22, 1958. The trial court re-set the hearing on the temporary injunction for May 22, 1958. Defendant in his motion to dissolve denied all and singular the allegations in plaintiffs' petition and among other things pleaded in effect that the injunction suit in cause No. 30,277-B should be abated because there was a prior suit pending in the District Court of Gregg County, Texas, 124th Judicial District of Texas under No. 30,102-B, styled Dr. C. W. Payton vs. Mrs. Genevieve Hurst, et al., file date, March 10, 1958, which suit defendant alleged was to determine the rights between Dr. Payton and Mrs. Genevieve Hurst, individually and as independent executrix of the estate of Dr. V. R. Hurst, deceased, and also the Hurst Eye, Ear, Nose & Throat Hospital and Clinic, et al., growing out of a contract and agreement dated June 17, 1955, signed by Dr. V. R. Hurst in behalf of the corporation clinic and Dr. Payton, with defendant alleging his construction of the terms of said contract, and alleging that the two suits in question involved the same subject-matter and that the later suit for injunction should be abated.

The contract in question was introduced in evidence by plaintiffs at the hearing on May 22, 1958. Defendant also introduced in evidence at said May 22nd hearing the pleadings and proceedings in cause No. 30,102-B. Other evidence was also heard by the trial court.

On May 22, 1958, after a hearing on the temporary injunction, the trial court entered an order granting a temporary injunction against Dr. Payton, hereinafter more particularly referred to, which order was filed May 23, 1958. On May 23, 1958, defendant's attorneys of record filed a request with the trial court for findings of fact and conclusions of law. The trial court did not file formal findings of fact and conclusions of law in a separate instrument, but on May 26, 1958 (which order was filed on May 27, 1958), did enter an amended order granting a temporary injunction against Dr. Payton, hereinafter more particularly referred to, which contained detailed findings and conclusions. The injunction bond mentioned in the amended order was duly made and duly approved.

Defendant, Dr. C. W. Payton, has appealed.

The record shows that plaintiff clinic is a non-profit charitable corporation with active officers and directors, operating a hospital in Longview, Texas, owning a three-story building which has premises leased to Dr. W. B. Norman, space devoted to an eye clinic, optical shop separate from the eye clinic, and a hospital set up serving both Dr. Norman and Dr. Irving Stolzar, lessees of said corporation, with Dr. Norman and Dr. Stolzar, operating independently of the corporation, employing their own help, charging and collecting their own fees, and purchasing their own supplies. Dr. V. R. Hurst, who had been medical director of the corporation since the organization of same, died on December 7, 1957.

Dr. Hurst (allegedly and ostensibly on behalf of the corporation--with this matter being in dispute between the parties with appellant also pleading estoppel on the part of the corporation to deny the authority of Dr. Hurst to execute the contract on behalf of the corporation) executed the contract in question with Dr. Payton. ¹

After the death of Dr. Hurst, defendant Dr. C. W. Payton continued as an employee of the corporation and was paid a salary as an employee until he was discharged on May 17, 1958. On May 9, 1958, the Board of Directors of the corporation passed the following resolution:

'1. Be it Resolved that Hurst Eye, Ear, Nose and Throat Hospital-Clinic, a Texas non-profit corporation recognizes that under the Laws of the State of Texas, it cannot engage in the practice of medicine and that as of May 17, 1958, it is not engaging in the practice of medicine and that no undertaking, agreement or action of the Board of Directors will be done or instituted which could or might be interpreted as engaging the said corporation in the practice of medicine.

'2. Resolved that the Vice President and Medical Director is hereby directed to notify Dr. C. W. Payton that as of May 17, 1958, his employment is terminated, and that Dr. Payton be directed to vacate his office in the Hurst Eye, Ear, Nose and Throat Hospital-Clinic in Longview, Texas and take none of the records, files or other property owned by the said Hospital-Clinic Corporation. Vice President and Medicial Director is directed to inform Dr. C. W. Payton that he is not to practice medicine in the clinic in any manner except that he may continue to treat patients who are at the time of his discharge patients in the hospital portion of corporation building if that treatment be necessary to the well-being of each of said patients.'

On May 17, 1958, Dr. Payton was given his termination notice and was paid a salary for the full month of May, 1958. On May 16, 1958, the appellee corporation, by duly executed and recorded written lease, leased the space in its hospital building occupied by the eye department to Dr. I. H. Stolzar for a term of five years for the sum of $805.87 per month.

Dr. Stolzar took possession of these premises under the terms of the lease and in his testimony in the temporary injunction hearing Dr. Stolzar described the acts of Dr. C. W. Payton in interfering with his possession of the leased premises and described the confusion resulting from Dr. Payton's acts in violation of the temporary restraining order previously served on Dr. Payton.

Dr. V. R. Hurst sold his records and good-will relating to his ear, nose and throat practice to Dr. W. B. Norman on March 2, 1955. The appellee clinic was...