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 OmploJ

## part uadsr the nploymmt a08 on &?P%l 1, liw?

# ‘CHon. C. R. Miller, p4g4 2

oontraotwa6 l

xeoutobDooemberJ,, 1937, and oontlnued **in** exlstonoountil April 1, 1939. 'he rtfldavltof C. **A. KoAdm**  **rt~ter that**  **the subsequmt**  contractbetwoeatiimand Doahsr oontainedthe mm previslcnaPII tho ilrst oontmct arentioned. The meatmndum of **agreement merko&**  **Exhibit IA**  **’ ir**  the originalocntraot oxeoutcdby Strnnge,~ noAd4n **and** De&w. The l**$fldavltr** subalttrddisoloaepraotloeovhloh 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 ladividualor 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 lntsrrtatsao4meror,.p~rtorm4d for wag45 or **under** any contractof hire, urltten or oral, expriaror lapllod,provided that any awvloes psricrsedby an lnd~vldualfor uagm shall **be** doomed to be employmentrubJo& to thla **Abet** unless and until it la shown to the ratlsfaotlon or the Comaia6lont;hrt suah individualbar bean mad till oontlnueto be **free** Srom oontrolor **dlrsa** tloa **over** the parfornanaeof auoh ~onloes both under him contractof rervlosand ln isat;* Artlalo 522lb;,seotlen 17 (0) rradr: "(0) 'sragor'

mar& a11 reamoration payable for ~;ersonal

rerviass,lnaludlugoommlrelonrand **bonurrcr and**  the cash valoo **of** all remuneratloa payable **in any**  eedlum ether fhsn oash.

. .I The aentrsat oubalttrtl ndloatosthat 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 ineludrrhi4 oolnrlrrlon4. Lot ue now dotorAlne if ths ocntreot is eno for rervloeror 14 a partnornhlp agroeasnt.

Referringto the artlol4sof agreement or the **oon** traot between **them** partlea,we notlas th4t in the flrat paragrrphP. L. 3trang4,Sr. pad Charler**A.** MoAdan reelts that they hro ths parties of the **firmt** part and that they era the ovr~4rsof rsstaunnts in LboL4nxmn, War%4 And Beur Countl44. The r44taurantundor qu44tion 14 **ia** 84x~r county.

In paxngmph ?fe.

2 of the aontrtotthe part144 of the flrrt **part** 4gr44 to aealgn to party a? ths araondprrt 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 attentlanto mid burlao44 aa aanager thsruof. In the mama **paragraph** it i4 proridod that Amy pmpo44d ohm@4 in the polloy 4nd aenduot of thr burlnsrsmat **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 purpo444AA~ design4 of the part%48 of the first part IA the marmgsmsat of the buSlA444; that h4 (Do4hsr)hre no authorityto make aBd enter into oentraetrof 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 prorptlpdrpo4lt 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,rwlth th4 **aaMor** an4 foam **%A** t&lab 4uah burlnsrs 14 o aratsdh4 adhere to 8~4, ana not es4k to altar or ahsags f: n my way without the OOA

## sent noaorraryas heroin utAt4d.

IA paragraphNo. 3 of thlc oontrrat it 14 pm%dod: *All help 

## mustmeetulth approvalof elth4r e? the prrtltr of the flrrt part,, oth4rwinethe 4ald H. W. Oooh4r rlll t~edlctsly **dleuhnrgo** 4nld sA~loy494and vi11 44~~18~ part188 mootingwith the approvrtl of All ooncerA4d.Y Parrgraphrl

of the aontraotpmvldaa that the pmty of the eeaond 

### pa-t vi11 use the aoaountlng6Yet4A rpeolthsdby 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 aooountlagmede thereof or hIe one-thirdInterest in operatlonor eald burineee. . .*

It oannot **be** dleputed that under the terms of this ooatreotDoeher Ir not rree rrom controlor the partier oi the riret part.

There are many 6erlnltIoneof 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 partnerehiprelAtioneMp. some oourta hers Applied the prorite aad lome test; **others look**  to the oontrolor the buelneer, togetherwith other eurrouad~ngraote. 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 surlneen18 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 relatloaasame by the pArtier the aritor%on or partnership and reoogulsee that profit-eharlag Is oae teat 

## or that rel8tlon.

Upon thle eubjeot38 Pexar JurIeprMerme p. 844 ha8 thle to 6~:

The mt 0s profit-ehdrlng ie not alone drth3nt to eetrbllehthe exlatenoe of e partnerahlprelation 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-sharinglo evlaenoeof partnerrhilp, where88 as **betueen** themeelteathe lotual lntetit or partiiu to be **or riot**  **to be**  **partner6** determines.

. .*
We think we aan SArSiY ray that the exletenoe0r the ounerehlpor one-thirdar the net profltu of the buelneeo in this Ineteaue,togetherwith the one-thirdownerahlp IA the Atock an **hand boor**  not conrt%tuteDoeher &partner. The lease, the ‘butlblng, mm3the **rIxturee** Are the property or theBeet.

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 rupreeentogerlrhsblsroods rlmoet eroluelvel~.

In 20 **R. C.**  L. **p.** 831, us find t&I8 **rtatementr** ‘Thepartiaulartest as to the exlrteme oi the partnership

relstlonvhioh Is rort wlbely soaepted today and vhIoh Ie 

### l 9@lorble 

### l

speciallyes betueen the psrtlss tbereelveaIrrerpeetIve of tha rights of **third** person8 **is** th*t **II** partnersM **18** rormefl end exlmta only when it ~88 the bntea ion oi F the partiem that ther shauld**be** partners.

. . . On the other hand, tf the tame oi the oontraotexI8E llrgbetwem the perties &o:not oonetltate a partnorsUp, nene r%lZ be deolme4, sven thou@ the **parties** In rortla

osll the amaugment one.
. .'
In **this** aontractuRat, 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 

## martbe agree6 upon bf thee8 that the **party** or tRe secondpas% hsd no 

## autherlty to MkS or enter into am oontraotr 0r any kind; **that** sill hs19 mat mootwith the rpproval or the partlea or the tIr8t p&rt;~e&A the kind o? saaounting8yntem WLO epeoliied br the partler or the rirrt **part.**

In paragraph 5 the c)ontmot 6etLnitelymbkee provI8lon ror the llqulilstion 0r Darher*o Interest ln tRel +ent @r •d18~I~8~l or dleohmrge.* The inteutlonor the prrtlea In tRle oontraotappears olelr to 08. Tha Intentionof Ma&lea A& 2btrmge war to e~m9loy A manager 0r their buelaesa in San Antoniogiving **him M**  tnteFert la tlm net PIWilt in **order** to promotehla psrsonsl Intrreetud beet &fort8 in the managementof the bn8Iae88.

Mr.'Zosher doe8 ~~equIr* **~3** intermvt In the net 9rnrits ot the burtnorsun43er &hi8 oontxwatbut 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@sA 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 compeaeatloafor 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. UnmploymeatY*

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 dlffloultof applIoatIonbeoauret l WWC~ Lt l p purr

that one should Juro In the profits oi an enterprim am oompanratlon for mmvioes, property, or opportunity fuu;;ahedby 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,rlonupon 

## 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 affidavitof 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 memorandumof

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 rimi:Dg tht mmhrr 18 not irea from ooatrol or dlrretlosunder hlq aontraotmad lnHon. C. 

### R. Miller, page 7

raat

. On&or the deflnltionof l aploymsntquoted onpge 2 of thI8 opinion the burden of Mti8iylzigthe CoamInslonof ths freeborn

of aontrol or dlreotlon**la** upon the party aerrertlng 8uoh freedom. **Your** ComaIsslonshould determinefrom all of the faotr If that burden ha6 bemn dl*oharge&

A8 it Is adaltted that the teras of the oontraot exlrtlngbotveen the putls8 aftcsr April 1, 1939, remalaod the 8~0, we do not think that the 

### new oontraotareated 8 

### prrtnerahlp.
**Xour8** 

### tory truu ATT0IW.X**OE1ERAL OF**  TEXAS