OFFICE OF THE ATTORNEY GENERAL OF TEXAS 

AUSTIN 

3noraMe 7. 9. fllll, Xeimbar 

IzCustriai Accident Boar8 

sAi3tAIl~ Texas 

servicing the 

into. Texas? 

1930, requesting 

bove stated QLESof the letter 

Sherrill, attorzzy, 

rkmn' 8 Compa~saes enolosad ia 

nsus El2otric-Co8 domiciled in 

8uthorizut-i to t‘rcnsate of Texas and has 

rt line into Texas from 

1398s et Texarkar;a. Lt 

any mea constantly in 

exas, but in its operations 

zs a?loyees necessary into 

the State of Tcxzs to aarry on the busi3188s there. They all, however, return 

to headquarters et Texarkana, :XkBELSaS. 
Eonorvble T. ii. Hill, page 2 

*'The 'question hes &risen before the 

3mid es to whet&r or not it is nooessrry 

for this Cooperative to maintain e Korkmen~:+ 

Comgensatlon insuranca gollpy to cover the 

activities of, its ezxgloyees who go into the 

State of Textis for the pwqoso of servicing 

tha short line running into. Texas. ~iOuld . 

or oould the State of Texas pcrmlt employees. 

of the Coogeretlve who are injured-while 

working in Texas to recover compensation 

fro;3 the Cooperative under the laws of the 

state of Texas or would the State of Terss 

require such employee to pursue his remaaies 

in the State of Arkansas sinoe his aotivitfes 

in Texas wo~alC only be inoidentel to hi? 

Arkensao employment. 

"It is zi+ understanding tbst you law 

exempts 'employers of less t&n three employees 

frola the provisions of the Texas Conponeation 

irct. %oulLthe Arkansas Corporation borequired to have.three.employees employed solely in the State of Texas to make this law applloable to them, or would it be aggllcable to 

them if they e&Aoyeh three or nore employees 

of the .St&te of kxkensas who were used In the. 

servicing of the lines, although et diffiorent~ 

t,j.ms, in the State &I+" Texas." 

lissiming that the e@oyees of the Southwest 

Arkansils-Electric Cooperztiv2 Corporation servi.oinSthe 

lines runnfng into the State ot Texas are engaged in intrustate comerce, your Inquiry resolves itself ~Gito thb Sol1owfng tvio~questions: 

1. Is the Southwest Arkansas Blcctric 

Cooperative Cor$orstfon, who sends three or 

more of its i*rkansns onsloyces into the State 

of Taxes for the pirjose of servvfoing its 

.ahort line'running into Texas, subject to the 

Tcxas~YiorWn*s Compensation Law? 

2. If they are not'subjeat to the act, 

&wjr an e.zqloyee of the Southwest Arkansas 

xlectric Cooperative Corporation mvho is In-,' 

Jured while wor.king ln Texas sue, his Z@OYer 

under the laws of the state of Texas?' 
Eonorable P. 3. ilill, page 3 

Section 2 or Article a306, Eeviaea Statutes' 

of Texas, relating tc the ii'orkmenVs Compensation Luw, 

reads &E fOl.iOVJS: 

"The pFOQidOIlS of %his la,w~shjll not 

n~?ly to aotiona to recover demeges for per3ora.l injuries nor ror death resuiting frou 

-,ersonel injuries sustnined by'donestio 

serv&nts , fernn laborers, rsnch laborers, 

car to euployeo of wzy firm, person or 

cor~orstlon having in his or their employ 

less than three employes, nor to employes 

of any person, firs, or corporat.ion.operstirig any steam, electrio, street or interurbii;l raiiviay es e ooiimon carrier. 

ecgloyer 4 three cr more employes s Rl3 t 

tizo of beco&n;7, ssubscriber shell rmsin 

LLtnC 

liobilitfes. duties end exemptions of such, 

notwithst&tiing sfter hsvln,? become e subccrioer the member of emvI.ovesiusy tit times 

bo le~eas than three.* .(Un&rscorFng ours) 

Se.Otion 1, 02 Artfole 82OQ re&s‘in *t as. 

follovrs: 

*~E.nployer* she31 meon eny person,, 

flrm;'partnership, association of persons 

or corporut%ons or thelr.lag~l rcpresentetives that zskes contracts of hire." 

The Texas Workuen*s Compensation Lapels en 

eloctivo net, end the leg&l relation arising between 

ths ez~loyae, ths ezqo,Dloj~~ end insurer, who bringihe.aocives vzithin the.o>erution of the act, is oontrcctuel~. 

Th ?&in objactive OP the sot is to provide, in lieu 

of cozmor~ law liability, oertain .snd aboolute,coupensation or boaafite to uqloyees or.the3.r de;idn&ents In 

cases where .suoh em~loyeas hsvve roceived.injuries in 

tf?a curse of their employsent resulting in disability 

or Geath. Any employer of lsbor,'unisss he is exwesaly 

exciutieii fro.mthe oaaration of the la-d, is sl;ibject to 

the act, und nay bticome :I suhsoribar to the association. 

Ly co;l$lging with the sot, the employer bacom6s,~uxcept 

.d td certain clafins for exemplary dainwgjcs, exempt ‘from 

all coscon .hw or statt&ory liability on account of inJuriw suftered by.his employees. The statute does nqij 
Honor;:ble T. B. Hill, page 4 

us5 the word *'regul~P or wre&l.arly enployed" or WOnployed 

solely within the state" to characterize the continuity of 

the e;nlloyl;lent of the three or ore esiployem, To ereqt 

an e.zployer Sroathe operation OS the act in Texas on the 

g-ouhd of rcduation OS nurnbcr OS employees, it viould ai)perr 

necessary to show t&t tbs nuber oS mployees hss been 

peranently reduced below three. ,~, 

IS the Southwest Arkansas Xleatric Cooperative 

Corporation does not elect to corm tier the Texas QIorkmn*s 

Cospeusation Law, the Guestionthen arises, would one of 

tmir eZlplOyees injured in Texas have the right to Sue under 

the Texas laws and recover a judgstent in such suit? 

This question is unique to the extent that Arkans-s 

is one o? the two re.xainin& states that does not have a Work- 

:aen's coapeasation act. IS it were not Sor that fact the 

case of Sradford Zleqtric Light Co. v. 3ennie X. Clapper, 

2.56 U. 3. 145;76.L. ed. 1028, 52 5. Ct. 571, 82 A. L. Il. 

896; would be exactly in point. The facts In the Clapper. 

case, wpra, are Identical with the situution you inquire 

about in your letter. %'e'mntion this aase to disti...guish it

as certainly it would control in this instance if Arkansas 

bad any Sam of workmen's CogDensation act. 

Since the State oS Arkansas does hot have a workI*en's compensation sot, -A% See1 that the rule OS lcx loci 

deiecti Huuld apply ii an elnployae of the southwest micanss 

;ilect&‘ic Cooperative Corporation we~‘e injured in Texas. It 

is thoroughly established as a gemral rule that the lag OS 

the place where the injury incurred 16 the law that governs 

and it applies with respec t to the substantive -phases OS 

torts or 'the actions thereior. Curtis v. Conpbell, 70 Fed. 

(2d) 81; Loranger v. Nsdeau, 10 Pac. (2d) 63, at p. 65: Wadcury v. Central~Ver.mnt Railway, 12 hr. 3. (2d) 732. In thte 

ci;ae of Curtis v. Campbell, supra, certiori denied, 55 Sup. Ct. 

549, 295 U. S. 737, Circuit Judge XOOlley states the rule OS 

the iaw of tire place ln the Sollowlng language: 

"The heart OS the titer is thit tbs law 

OS the plade of a tort gives a *right OS aotion' 

.to one fulling within its term; and it does 8s 

giz",;t regard to the residence of the tort- 

. In such case 'the law of the place where 

the right of aotionwas acquired or the liability 

n3s Incurred will govern as to th ;e right of acticjn,f Story on ConSliat OS Laws ( 9th Zd.) 775; 
Eozorable T. 3. Hill, Page 5 

American law Institute Restatexent, Conflict 

OS LaWa, 1 i 449, 455; Texas & N. 0. R. Co. v. 

Cross, 60 Tex. Civ. App. 621, 128 8. W. 1173; 

Louci-8 v. Stadard Oil Co., 224 N. Y. 99, 120 N. 

Ii. 198; &later v. Mexican P.. R. Cb., 194 U. 8. 

120, 126, 24 S. Ct. 381, 4&i. Ed* 900; Ormsby 

v. Chase, 290 U. S. 387, 54 S. Ct. 211, 78 L. 

Ed. 378, 92 ii. L. R. 1499." 

Roth the Courts of the State OS Arkansas nnd the 

State of Texas have recognized the rule of lex loci delecti. 

Zee Cueron, et alv. VandergriSS (Sup. Ct., i&c.), 13 8. 7:. 

1092, Taxas &W. 0. R. Co., 

vi. 1165. 

et alvs.Mi.fler, et al, 128 S. 

You are respectfully advised tint it is the opinion 

of this department that the 5outhwest Arkansas Slectrlo Cooperative Corporation may elect to come under the ;iorkinen~s 

Coxpensation.Law of Texas. However., If the company does not 

choo.se to come under the Korkxen's Compensation Act of Texas, 

those employees who are injured in T&as under the rule of 

lex loci delecti may pursua their Olalms for damages under 

the laws of the‘stata of Texas. 

Yours very truly 

XmORNEY OrnRAL 03 l%xAs 

BY (Slgaed) 

FredePlk B Isely 

Assistant