OFFICE OF THE AlTORNEY GENERAL OF TEXAS 

AUSTIN 

flOnOMblo c. R. xil;l@l’ 

QOQQlSS~OtlBP 

ialan OS this D,par8- 

sa4wm of yrw8eat 

oh0 WeoQ4 p#t in the OmploJpart uadsr the nploymmt a08 

on &?P%l 1, liw? 
‘CHon. C. R. Miller, p4g4 2 

oontraot wa 6 l xeoutob Dooember J,, 1937, and oontlnued in 

exlstonoo until April 1, 1939. 'he rtfldavlt of C. A. KoAdm 

rt~ter that the subsequmt contract betwoeatiimand Doahsr 

oontained the mm previslcna PII tho ilrst oontmct arentioned. 

The meatmndum of agreement merko& Exhibit IA’ ir 

the original ocntraot oxeoutcd by Strnnge,~ noAd4n and De&w. 

The l $fldavltr subalttrd disoloae praotloeo vhloh 

acre not in aword w%th the term4 of the oontraot batwren the 

pnrtlea; this being an inquiry into the rslatlenshlp betveon 

the parties, YO think it neoesmry to look to the aontract 

and to the ?aatr boferr WJ. 

Art&cl6 522lb,.Seotion 17 (4) reader 

l 'Employing unit' mans a4 ladividual or 

typo t? organirattoa, lnaludlw any prartaor6Up, 

. . . 

Artlolr 5221b, Seotlon 17 (g) (11 readso 

'(8) (1) ' mployaent ‘ subJoe to the ether 

prorlrIon8 OS this nubaaotion, aednt awvloo, In0iuahg asrvioe in lntsrrtats ao4meror,.p~rtorm4d 

for wag45 or under any contract of hire, urltten 

or oral, expriar or lapllod, provided that any 

awvloes psricrsed by an lnd~vldual for uagm shall 

be doomed to be employment rubJo& to thla Abet 

unless and until it la shown to the ratlsfaotlon 

or the Comaia6lon t;hrt suah individual bar bean 

mad till oontlnue to be free Srom oontrol or dlrsatloa over the parfornanae of auoh ~onloes both 

under him contract of rervlos and ln isat;* 

Artlalo 522lb;,seotlen 17 (0) rradr: 

"(0) 'sragor' mar& a11 reamoration payable 

for ~;ersonal rerviass, lnaludlug oommlrelonr and 

bonurrcr and the cash valoo of all remuneratloa 

payable in any eedlum ether fhsn oash. . .I 

The aentrsat oubalttrtlndloatos that there 1s an 

*sreploylng unit* in th%r Lnatrnos. The nfatutery d4flaItlen 

of vngat Is brorrd enough to laaluda the veekly vag4 *id to 
lion. C. R. Miller, page 5 

Doshsr and aleo ineludrr hi4 oolnrlrrlon4. Lot ue now dotorAlne if ths ocntreot is eno for rervloer or 14 a partnornhlp 

agroeasnt. 

Referring to the artlol4s of agreement or the oontraot between them partlea, we notlas th4t in the flrat 

paragrrph P. L. 3trang4, Sr. pad Charler A. MoAdan reelts 

that they hro ths parties of the firmt part and that they 

era the ovr~4rs of rsstaunnts in LboL4nxmn, War%4 And Beur 

Countl44. The r44taurant undor qu44tion 14 ia 84x~r county. 

In paxngmph ?fe. 2 of the aontrtot the part144 of 

the flrrt part 4gr44 to aealgn to party a? ths araond prrt 

on-third 4hemo in the not profltr of the busln444 and to pay 

him a w44kly ulary of 820.00 per rook ma long a4 ha devotes 

hlr tire and attentlan to mid burlao44 aa aanager thsruof. 

In the mama paragraph it i4 proridod that Amy pmpo44d ohm@4 

in the polloy 4nd aenduot of thr burlnsrs mat be qpWd UpOA 

by ono of the partlss of the first part; ?urthrr that party 

of the 4secPnd part is bouod to carry out tho purpo444 AA~ design4 of the part%48 of the first part IA the marmgsmsat of 

the buSlA444; that h4 (Do4hsr) hre no authority to make aBd 

enter into oentraetr of 4~y k,lna that will be blndlng upoa 

the pwtls8 of the flmt part without first Obta%Ahg their 

oon4oat IA vrltM$; that whllo h4 is In o,ontrol of the burln444, ha must prorptlp drpo4lt ill funds in the South Texas 

Biatlonrl Bank of %a Antonko, Porsa, to tho are&U of the 

Chlokan Ijhak uid operate tho buslalrsr vlth f&are a~& oautlon, 

having duo regard for th4 vl4b44 and poliay of tho part108 

sf the flrrt part, aad bolng fuilia,r wlth th4 aaMor an4 

foam %A t&lab 4uah burlnsrs 14 o aratsd h4 adhere to 8~4, 

ana not es4k to altar or ahsags f: nmy way without the OOAsent noaorrary as heroin utAt4d. 

IA paragraph No. 3 of thlc oontrrat it 14 pm%dod: 

*All help must meet ulth approval of elth4r e? the prrtltr 

of the flrrt part,, oth4rwine the 4ald H. W. Oooh4r rlll 

t~edlctsly dleuhnrgo 4nld sA~loy494 and vi11 44~~18~ part188 

mooting with the approvrtl of All ooncerA4d.Y 

Parrgraph rl of the aontraot pmvldaa that the 

pmty of the eeaond pa-t vi11 use the aoaountlng 6Yet4A 

rpeolthsd by partlas a? the iirst pmt. 
Hon. G. R. Miller, pege 4 

Paragmph S prorldee tfiat It Is *underetooa end 

agreed that et any the perty of the eecond part ehould leere 

employment of partlee of the first part br QIUOO of diemiee81, 

dleo!u%rge or death or party or the eeoond part then he or 

his heirs ehell be paid in oeeh end proper aooountlag mede 

thereof or hIe one-third Interest in operatlon or eald burineee. . .* 

It oannot be dleputed that under the terms of this 

ooatreot Doeher Ir not rree rrom control or the partier oi 

the riret part. 

There are many 6erlnltIone of pcrrtnerehlpe, both 

by the oourte and l uthore. There Are ilao dlrrereat emenWale whloh have bean held to be the teet or the exletenoe 

of A partnerehip relAtioneMp. some oourta hers Applied the 

prorite aad lome test; others look to the oontrol or the buelneer, together with other eurrouad~ng raote. The Intention 

or the partlee ir the test uead in my Inrt~npnoer. 

The oourte or Taxes hare reruee4 to oonalude that 

ehrlng in the net prorttr or 6 surlneen 18 mrrloient to 

oonntitute a partnership. The Supreme Court or Texas In the 

ci~ne or Freeman TA. Huttlg s~eh ~na Door Comprny, 153 3. Y. 

182, rrkee the relatloa asame by the pArtier the aritor%on 

or partnership and reoogulsee that profit-eharlag Is oae teat 

or that rel8tlon. 

Upon thle eubjeot 38 Pexar JurIeprMerme p. 844 ha8 

thle to 6~: 

The mt 0s profit-ehdrlng ie not alone drth3nt 

to eetrblleh the exlatenoe of e partnerahlp relation 

among the tirers; It In only en evlbentlw feet; 

other aleeats muot oonouT And be aonetbere~d. Ae 

between third persona And AIYI alleged pArtnerrhlp, 

prorlt-sharing lo evlaenoe of partnerrhilp, where88 

as betueen themeeltea the l o tua l lntetit or partiiu 

to be or riot to be partner6 determines. . .* 

We think we aan SArSiY ray that the exletenoe 0r 

the ounerehlp or one-third ar the net profltu of the buelneeo 

in this Ineteaue, together with the one-third ownerahlp IA 

the Atock an hand boor not conrt%tute Doeher &partner. The 

lease, the ‘butlblng, mm3 the rIxturee Are the property or the 
Beet. C. R. IIlller, )#tSe 5 

partlea of the first part md omerehlp a066 not +*8t In tRe 

t&se oontmotlng parties. %a mtoek on hand In this Iaetsnse 

rupreeento gerlrhsbls roods rlmoet eroluelvel~. 

In 20 R. C. L. p. 831, us find t&I8 rtatementr 

‘The partiaular test as to the exlrteme oi 

the partnership relstlon vhioh Is rort wlbely soaepted today and vhIoh Ie l 9@lorble l specially es 

betueen the psrtlss tbereelvea IrrerpeetIve of tha 

rights of third person8 is th*t II partnersM 18 

rormefl end exlmta only when it ~88 the bntea F ion oi 

the partiem that ther shauld be partners. . . . On 

the other hand, tf the tame oi the oontraot exI8E 

llrg betwem the perties &o:not oonetltate a partnorsUp, nene r%lZ be deolme4, sven thou@ the 

parties In rortla osll the amaugment one. . .' 

In this aontract uRat, rIgRt 4W DoeRor et0 rb 

the polloiee 0r th8 bu8Ine86, to eontract ror the b lae88, 

to oomtrol the bu8Ino88 aad ulse thr ultimate d*ol*I % om 

tRe pereonnel or the ?m818e88? 9, 

The prrtier 0r tRe rimi part vere 08rorul to et&a 

la the oontraot that ther vvre th8 morr or the plsee o? 

bu8lneee In t?sn Antonlo; thmt ill propo8ecl ehangea 113 policy 

rad oonduat of the b~abesa mart be agree6 upon bf thee8 

that the party or tRe second pas% hsd no autherlty to MkS 

or enter into am oontraotr 0r any kind; that sill hs19 mat 

moot with the rpproval or the partlea or the tIr8t p&rt;~ e&A 

the kind o? saaounting 8yntem WLO epeoliied br the partler 

or the rirrt part. 

In paragraph 5 the c)ontmot 6etLnitely mbkee provI8lon ror the llqulilstion 0r Darher*o Interest ln tRe l +ent 

@r •d18~I~8~l or dleohmrge.* The inteutlon or the prrtlea 

In tRle oontraot appears olelr to 08. Tha Intention of 

Ma&lea A& 2btrmge war to e~m9loy A manager 0r their buelaesa 

in San Antonio giving him M tnteFert la tlm net PIWilt 

in order to promote hla psrsonsl Intrreet ud beet &fort8 

in the management of the bn8Iae88. 

Mr.' Zosher doe8 ~~equIr* ~3 intermvt In the net 9rnrits ot the burtnors un43er &hi8 oontxwat but a8 oolpensstIaa 

for hts asrvlcres; he doss not hare oontrol over the huslne88 

nor doea hs hrva ownership In the permanent aaeets Cd th8 

burinese. Tha oontx%at does not evLdan@s A true intsntion 

or the oontmoting parties to f0Pa a paxrtn6rehIp. 
ILon. c. R. Wlller, page 6 

The atithorltlear oi other Stater mapport our par%- 

tion that one rso4~Ivlag I). rhare of the profit8 0r a buslneer 

as compeaeatloa for srrvice~ Ir not thereby made a partner. 

see Brsinig v. sparrow, 80 1. E. S7; Bond v. W 78 3. t. 

37; In Re Clorenor 300tt C. C. El. Unmploymeat Y* rmirano* 

~ervlcm, 8. X. page 35566; klagnsr v. Bottle@, 139 U. *. 4215. 

In Wirconrln In the cam of Yagner t. Bhttlo8, 139 

B. V. 425, the court raid that the deflnitlon of partnwrhip 

Ir eluolve and dlffloult of applIoatIon beoauret l WWC~ Lt 

l p p urr that one should Juro In the profits oi an enterprim am oompanratlon for mmvioes, property, or opportunity 

fuu;;ahed by him In rid of the beelneme, no putnorrhlp MBe muot share In the pmfltm as muoh m&d not m 

pmuilon Sor rmvlo~ or property* or the pwtlu 60 net 

oo~- 

beooee partners.* 

biter reablng the auly mthorltlu in thla Stat0 

upon the 8ubJmt or pmtnnmhlps @ad the oama 

Y8lker-Brlth Cotplny ~(1. Roan, 43 8. fi. 

V8. Bank 0r OrmntI110, e 8. Y. 84; nurmy Qianlq strtu 

Co. em. Exchange Nations1 Bank, 61 P. Y. 806, md the moat 

rooent reported drol,rlon upon thla sabjoot fouad In In Rer 

Zoitr, m opinion of the Appallate Court of Indlum redored 

January 23, 1941, aot yet reported, we 8re oomInca4 that 

the oontcaot did not oonrtltute & partnercrhip between the 

aoatrmting parties prior to Apr%l 1. 19SQ. 

The affidavit of Hr. NoAbe reolter that the ~0th 

tmot use tbs l arcmftar the mbangs in the oostrmtiag part%ea 

on April 1, 1939; hojrsvsr, a oopf of the orrtiiioate oi a8- 

mamrd name fllrd in Bexar County, rexam. OQ the 11th day of 

Oecmmber, 1938, llstr both #sAdan aad Dasher ae partnOF@. 

Iota hare eubeItte& a oontraot or memorandum of 

The affldrarlts uubmltted indloots a brparture frOn 

the terms of the oontraot Ia a f6w inrrtan0u. Tim vsrlanoe, 

in our ~pln.iOa, 1s Aqt #bUifi0ient to pr*0lude the ~nmployRWt 

a0ibtp6nsati0n COIWIISSIO~ rr0n ding l r imi:Dg tht mmhrr 18 

not irea from ooatrol or dlrretlos under hlq aontraot mad ln 
Hon. C. R. Miller, page 7 

raat . On&or the deflnltion o f l aploymsnt quoted onpge 2 of 

thI8 opinion the burden of Mti8iylzig the CoamInslon of ths 

freeborn of aontrol or dlreotlon la upon the party aerrertlng 

8uoh freedom. Your ComaIsslon should determine from all of 

the faotr If that burden ha6 bemn dl*oharge& 

A8 it Is adaltted that the teras of the oontraot 

exlrtlng botveen the putls8 aftcsr April 1, 1939, remalaod 

the 8~0, we do not think that the new oontraot areated 8 

prrtnerahlp. 

Xour8 tory truu 

ATT0IW.X OE1ERAL OF TEXAS