Texam Oil Corp. v. Poynor

Decision Date31 December 1968
Docket NumberNo. B--1190,B--1190
Citation436 S.W.2d 129
PartiesTEXAM OIL CORPORATION et al., Petitioners, v. D. D. (Pee Wee) POYNOR, Respondent.
CourtTexas Supreme Court

Stubbeman, McRae, Sealy & Laughlin, Milton L. Bankston, Midland, for petitioners.

Finley & Scogin, Kermit, Aubrey Edwards, Big Lake, for respondent.

PER CURIAM.

This is a plea of privilege case arising out of a suit against an individual and a corporation for slander. The question is whether a corporation may be held for trial in a county other than that of its domicile where there is an absence of proof that the slanderous remarks allegedly made by the corporate agent were authorized by the corporation or ratified by it. There was evidence that the statement made by the agent was referable to his duties, but there was no proof of authorization or ratification.

The statement allegedly made by the agent (who was then a director of the corporation and later its president) while discussing company business was, 'Well, that * * * Pee Wee Poyner (the plaintiff) has been stealing oil from Texam (the defendant corporation) and selling it to the Drilling Contractors.'

The trial court overruled the defendant corporation's plea of privilege to be sued in its home county, thus finding by implication that the statement was referable to the agent's duties, and concluded that this was legally sufficient to overrule the plea of privilege. The Court of Civil Appeals at El Paso affirmed. 431 S.W.2d 802.

We have jurisdiction of the appeal under Articles 1728 and 1821 1 because of conflicting holdings of the Courts of Civil Appeals. We approve the decision of the Court of Civil Appeals in this case; and pursuant to Rule 483, Texas Rules of Civil Procedure, the application for writ of error is refused, no reversible error.

The conflict arises from the opinion of the Court of Civil Appeals sitting at Galveston in Cyrus W. Scott Mfg. Co. v. Millis, 67 S.W.2d 885 (1933 writ. dismissed): 'The slander charged was words spoken by an employee of the defendant corporation, and in such case it is necessary to allege and prove that such act * * * was authorized by the corporation or that it was ratified by it before it can be held liable for the words spoken.' The above case was followed in Saenz v. Lower Rio Grande Valley Chamber of Commerce, 296 S.w.2d 806 (1956, no writ) by the San Antonio Court of Civil Appeals. In so far as these cases conflict with the opinion of the Court of Civil Appeals in this case and with this opinion, they are disapproved.

The rule which Fletcher says is 'the better and majority rule,' 2 was announced by...

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27 cases
  • In re South African Apartheid Litigation
    • United States
    • U.S. District Court — Southern District of New York
    • 8 Abril 2009
    ...(holding that a corporation is liable for acts taken by a director within the scope of his or her authority); Texam Oil Corp. v. Poynor, 436 S.W.2d 129, 130 (Tex. 1968) (holding that a corporation is liable for libelous statements of a director when those statements were made in the scope o......
  • Rodriguez v. Sarabyn
    • United States
    • U.S. Court of Appeals — Fifth Circuit
    • 24 Noviembre 1997
    ...of that duty. Neither express authorization nor subsequent ratification is necessary to establish liability." Texam Oil Corp. v. Poynor, 436 S.W.2d 129, 130 (Tex.1968) (quoting Great Atl. & Pac. Tea Co. v. Harris, 75 S.W.2d 974, 976 (Tex.Civ.App.--Eastland 1934, writ dism'd)); see also Well......
  • Ehrhardt v. Electrical & Instrumentation
    • United States
    • U.S. District Court — Eastern District of Texas
    • 24 Julio 2002
    ...to the corporation, and was made while in the discharge of that duty." Westfall, 956 F.Supp. at 714, citing Texam Oil Corp. v. Poynor, 436 S.W.2d 129, 130 (Tex.1968); Wagner v. Caprock Beef Packers Co., 540 S.W.2d 303, 304-05 (Tex.1976). Given these two standards, the court finds that EIU i......
  • State v. Am. Tobacco Co.
    • United States
    • U.S. District Court — Eastern District of Texas
    • 25 Febrero 2020
    ...of Texas intermediate appellate courts on the basis of inconsistency with Fletcher's Cyclopedia. See Texam Oil Corp. v. Poynor , 436 S.W.2d 129, 130 & n.2 (Tex. 1968) (following "[t]he rule which Fletcher says is ‘the better and majority rule,’ " and accordingly disapproving a decision from......
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6 books & journal articles
  • Defamation in the workplace
    • United States
    • James Publishing Practical Law Books Texas Employment Law. Volume 1 Part VI. Workplace torts
    • 5 Mayo 2018
    ...authority nor subsequent ratification is necessary to establish liability. Buck , 678 S.W.2d at 627 ( citing Texam Oil Corp. v. Poynor , 436 S.W.2d 129 (Tex. 1968)). In order for the corporate employer to be liable for an employee’s defamatory statement, the statement must be within the sco......
  • Table of cases
    • United States
    • James Publishing Practical Law Books Archive Texas Employment Law. Volume 2 - 2016 Part VIII. Selected Litigation Issues
    • 27 Julio 2016
    ...1995, writ granted), §40:8.B.2 Texaco, Inc. v. Sanderson 898 S.W.2d 813 (Tex. 1995), §§40:2.D, 40:2.D.1 Texam Oil Corp. v. Poynor , 436 S.W.2d 129 (Tex. 1968), §29:3.A Texas A&M University—Kingsville v. Lawson , 87 S.W.3d 518 (Tex. 2002), §34:3.C Texas A&M Univ. v. Chambers , 31 S.W.3d 780 ......
  • Defamation in the Workplace
    • United States
    • James Publishing Practical Law Books Archive Texas Employment Law. Volume 2 - 2016 Part VI. Workplace Torts
    • 27 Julio 2016
    ...authority nor subsequent ratification is necessary to establish liability. Buck , 678 S.W.2d at 627 ( citing Texam Oil Corp. v. Poynor , 436 S.W.2d 129 (Tex. 1968)). In order for the corporate employer to be liable for an employee’s defamatory statement, the statement must be within the sco......
  • Table of cases
    • United States
    • James Publishing Practical Law Books Archive Texas Employment Law. Volume 2 - 2014 Part VIII. Selected litigation issues
    • 16 Agosto 2014
    ...1995, writ granted), §40:8.B.2 Texaco, Inc. v. Sanderson 898 S.W.2d 813 (Tex. 1995), §§40:2.D, 40:2.D.1 Texam Oil Corp. v. Poynor , 436 S.W.2d 129 (Tex. 1968), §29:3.A Texas A&M University—Kingsville v. Lawson , 87 S.W.3d 518 (Tex. 2002), §34:3.C Texas A&M Univ. v. Chambers , 31 S.W.3d 780 ......
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