OFFlCEOFTHE,A-lTORNEYGENERALOFTEXA!S

AUSTINRoxwabls &mea x. Kilday, Page 2

the agreanent between- the oarrier and ths 

### passenger.*

We 

### are attaohiq to this opinion oopy~otyour fin io. 76, so that tbo sane lsay be reisrred to in QORjunationwith this opinion.'

It i8 to be noted t&at alloi the situations a,umbhr& (a), (!a) end (0) in your letter arm aet8es l22 drioh liability QS the carder 

### nightarise 

### by remsonof hia breaah of **oontrwt** with the oarriep; as Ui6tiaIprished fmm I tort liability **arising** 

### by reason of personal 4ury
**or propsrty**  dmnags **“ t-mused**  **by** 

### woident **end arising**  **out of**  the~mnsrshlp maintenanae~ibruse 

### of the autoProbil.e*.

*ormI?o. ?6expmmaly pfovi4es 

### fbrcmiersge ot tbi irrrruced-for

liabili&y both as to bodily injury a@ property .demsge,llWtda however, to 'that%mused. bymmldqnt and &rising out of the,awne~ip,'uaintenerioe or me 

### of &e automobile”.

lW:are:ratsbIn

to ti air ~rcwision.'in~.~nrXcL **$6.&lah ’** **roql& aover**  **the .lhbllltjr:**  **pi the**  **owner 00**  **0-d** 

### tar &:a rctorbua ariaing'byretumn oi hia bzeaahof ac+aF traatoi:.otirla; suoha8 you&am outlinedlu:.oitw~lo2ta **(m).,:.:(b) ant&r**  **We** 

### hate8eriaue dmibts~~etierswh aontq& Xiability~wuld bo~apgcopriatelp

00~sreQ'in

agolii of lkblllty insuranoe oomringparli0ul.w motor 

### btwms, M-them.wuld wem to.be but littlerelationshiy# bstueen the.tort liabllity.whiohmight srlse from the operation of suoh busses and the liability ariei!& by reason or brsaohes of oontraota suah as you outlixiftd in pour letter.

It jk 

### our opinion that Forn'No. 76.doea not indemnify the insured against the liability arising in situations (a), (b) and (0)mentioned;in your letter.

finyouy 16st prqraph you askt

*'Ii the said l&mu 76 is not 

### broad enough to oomn? these lfsbflitias then twomoe$ 

### reapeotfully request the 

### Attorney'Oenersl of Texw, aa legal. 

### advisor to the Commission, to tnzggest such 

### ohm&es in Pow 76 a8 hemay think neuemary to proteat passengerswith're-~ 'spot ..W,theliabilitiesmentioned ~kboWed?Without ,QWIB~~~ oh the ~usetion as to whether 

### or not the CegMlatur~ml&pavperl~ rsquiremotorbue8&mpadee ta wsrry ix2Bur8uw or a bond to i2ideaulirythem8elve8 8gaiUfit

liability to paeeengere a.rislhg fma breaoh of 8ontraat, suoh as you have outl.ixmd, we beg to adviee you that it ie our opinion.that the Lsgielsture ha8 ast 80 tequimd, uor 

### do we balisve that.under the present statutes It ha8 delegated authority to the Railroad 

### Commieeioaeo to W&!2bO.

The L8gi8lature ha8 provided &mprehanalvely for the r8gulation or motor bu8 tnureportetion by Chaptsr~270 of the Qsherel 8nd~Speoia.l Law8 of the Z'ortieth

### Legielaturn,, whioh statutes,as aaended;are to be found inVec h8n.e Bevised Civil Statutee. an Art1018 Qlla. 

### It la true that.thie **hot** ooufido8 th8 regulation of motor biro888 in' th8Railroad Conmi~8i~ofTcua~,butitoutliu~with great partieUarity the method by whioh.euoh mrgulatlon i8 **to bs**  

### effected. Beotion ll of 62&l Astarpreesly pmtia88 for the 3,neurenoe: protwtlon r8@zired of 

### motor bus oapt. -08, aad ilWlUd&B liability, ~ropOi't damgs;:'~d work**PLoDa** -8pmp8hivaticm ihBuran88. 8eouon ii rwires that own**ere or,**  

### operators. **0r MtoT**  bueees **suet -prooura**  **liability:.**

.dpropertpdwage inegr anoe~ l 

### ~folnde~~%tythoappll-, oqt age%nstlose **by** 

### reasonog any 

### pere+mal injury 

### to my 

## perBoa r0r 1088 or daorags'.to th8 .pmpe'rtyOf suy~&8reon other t&n the asqared, or hia~aa~loy8e8~



### . ‘i. baa&on **olabs** 

### for **loss** 

### ‘or **deeage from**  **pereonsl ‘** **%$ary. tar** .looeof,
or 

### 4 Y eaid p01 to, property oocmrriag duringthe-term of the

oy 

### or poliolee, aud arieiag out of the sotu+l operation of euoh uotor bus of bUsBoB : 9
. "

It is to be noted that no'provieion ie fgund in Artiole Qlla requiring the operator or a motor bus t6 Carry insuranae indemniry+g him against lia+lity erialng out or breaoh or contraot.



### Th~~oiily.p~vi~ion~ in the hat from.whioh a belogatiouto the **Railroad** Commission ofsuth9rity to 

### rtaqulm euoh lnswanoe.might be inferred sr8:

w8eo. 4. "(a) The Com&ieei~n 

### IS henb~. vested with p&far and a&mrity,~ and it is hcmsby &de its duty t0 SUpetiBe au4 regulate the pub110 asrvioe renderad **by** every mtor.bue~o88pmy Qppevating oveqthe highwap in this State, . F sHonorable JapaeS E. KildaJs Page 4

*(a) The Comaiseion is further suthorlaed and mqxnrered to euperviee~ and regulatomotorbueoompauieefn8llother matters affeotlng the 

### relatioaehip bet-en tmoh 

### motor**bus** oompcmiee and the trarrellxkg pblia thatney bemocmsuyto the effi**dent** operation OS this l&w.*

Wo do not believe that the tvo gwmrel provisions 8bwa@~otadehouldbs aonetruadw asto giv~theFt&mad Commfedon 

### authorityto phm the 

### addedburden upon motor hue oonqmniw of oarrying ineurenoe againet ll~bility fol: broach of oontraot.

In view of-the faot the% the Legislature hae, in SM~&OIX U of the **lot,** reeslyprovLdod o"8 rorreu-toua types **or instarawe**  **to be**  **aag3.0** 

### by **the** 

### wtor **bus oompmle1),** **tm** belWfethe&the zuleofwinalua&o.oniue, eralueiOelteriue~ should apply to thb getiral 

### prori~lonSwntainsd in 2ubeeotforur **(a) sa4**  (d) **of 8titfOn**  **4 of**  **th6** hot **above**

### quoted.

*A delegationof paw&; whenper

### dttud;

wet be 

### l

xprrneed

by 

### o~ear

w&
express terms, or by oleer lmplloa%lon. Aa edzoinletratlte~age&yhen only 

### maoh 'authority,eepeolellywithreepao~ ti .fhemgalatlon end oontkol o< private rights end property, EM ls olearlp del**egated,** or neoeesarily implied fromthat sxpraasly delegated. Aad V&.I?P a statute delegating a power direote the JMXIner 

### or It8 exerolee, that metml ie'ex- ~' oluelve or all 

### others.-

& the 

### on80of 

### Ctierolel St+dsM 

### Insurenoe,Compaay'rs. The Board of Iaburaaaa Coma%esionere OS Texas, 34 8.W. (24) S&5, the~court of Civil A&ipeele**o? ‘** **Austi~,** in 

### ~aonBldering

whether the Board 0s 3Jmuranoo Comaie~ionere had ~tbority~to preeoribe the oooanirreioa whioh lucmr8noe ooatpadee'aightpay their sgentB,esidt

*hnd these etatu%ee hsvhg under

### tekenin~ocmslderebledotallto proaoribe the powers cthd dutiee of the Eoard sebtlve to auoh m rataRmorable JEWS E. Kilday, Page 2

only, without #&vb authority to them to fir or regulate the ditiarent elsanente0r expense entering into that rate, muat be oonstnmd M a legislatlve denial of suah power. 2S R.C.L. 981; so oya. ll22."

-Tho Bo.aru

o(L11 exeroi6e OnlJ the adihorltp oonferred tlponltbylaw *in

. olear cM **unmistakable tentm,**  **and**w&l.1 not be deemed ,to**be given**  by lmplloatlon, nor oan it be **extended by**  'Inferenoe,~but must be 8triotly oonstrued'. 51 C-J. Sb; State ~6. Robinson (Tex. .8up. Ct.) 20 8.X. (24) 292, 297.”
Pisrean, J., .speakfngfor the Texas Supreme Court in the oamof State~va. Robineon, SO **S.W.** (26) 292, .ia *hloh.it,'oonsid~red the'sgope of dlmiretlon ,panted to the Land 

### Coamitasiansr; saldr

“Ho **authority** OBD bi exerolueU. by the **Comaisalon~r** or **the** Oaneral Laid :Offloo,exoept suoh au lu oonferred-ok
himby law. Xl8 .aotu in lxoem of powers 

### aon$erred

ako not otliolml aot6, aud -1tl8 not **neaemmry** .that the axe* oiee or pomra **be** negatived irt orbr.to

. **re8tralm** the mope of their 

### exwolsa.*.
Othermdhoritleeto the 88mim&t are: -The Railroad Cwaulssion le t& delegated egenoy of the State.to rig- ~ulate, under the law, oommerce OIBLI' the State ElghwayS. It-ha8 no author-. 

### lty to **do** 80 other than that given it 

### brthe etatutabw 

### - RaQ.roadCommitsiomo ,^.Texxde



### ie; Southwestern 

### ffreyhound Lines, 92 8.8. (,$d): 296 (Bau& J.., **Austin Court**  **of** Civil Appsale).

*The Contmlasion

18 a statutory body harfng only auoh powers aa are expressly granted, or are naoeesary to effeotuata .theobjeotlves Of thoee expreaalp'grqted.w - MoClendon, C.J., Auatln Cqurt of Civil A~peals,~Ral~~%~+U Commlaalou of Texas, et al. fa. Red **hr-**Honorable Jams E. Kildey, Page 6

rar FreI&t Llnea, 96 8.X. (2d) 735, at **p. 738.** 



### In **Lloyd*a** 

### Amerloa vs. Brooka, 105 S.W. (2d) ddQ,the Texas COSUSISS~O~ OrAppeela hadunderaonaldar

### atlanWm of?wt of a rider 

### on a tmak Inauraaae polloy, whIah prodded that the. Inaurad waa~lndaamiiied alao 

### agedsat loa for dama2a .to tha oontenta of the trqok oauaed by sots
or QoU, auoh M lightnla& oyolme, eta. The rider prodded that the polloy *Ia to be aonatruad 

### in aaoordanaewith Saotlon 1s of ArtIole Ollb?. The Court held that the shipper oould not sue the **tmobsr and**  the Insurer Jointly, **beaanae** &at&on **9llb** axpreealy provldaa that the lnaurer*a LIabIllty &sea only upou Jud@aent a&.nat~the~Inatared. Taylim, 

### J.,atpage 608;said:.

*It 1s oomedetl 

### thatt&hefSeotof tha 

### provlalona

oontalnod

in tl+.mdoraententla to extauU the polloy **b ’** **byoud**that raqairad'by tha atatatea. It'la &&tlaU that.It~~was

t&e laglalatlrs intent ia the enaotamnt ot this 

### Seotlon~of.ArtIola Ollb, a6 it was ln the onaatl33ik Of'seatlon ll thereof, to danytha shipper tha right to Joln the-lnanrer

### as a oo-defezpl-. ant with the oamler.*



### AnU so the Courtrefbie&~tck glh .to

cho @alpper the benoflt of the unuatmlly broad pmviaIons oi the lnauranae polloy of the.tmokar, and matrIMed the 

### shippers8 rI&q to the llmltatlone aontalned in ArtIa&e Bllb. Artl**018 9Ub**  lathe 

### Aat apply&g to motortruoka, and fo mmlogot18 to 911a, whloh applies to 

### motorbuaaea.

We, therefore, advise you that pbrn No. 76, belag the U&or Bue Endoraamaxit 

### for lnauranae pollolea 

### on motor busses, nay not be expandqd ao aa t.0 oover lIabIl.Ity

arlaIn8 fmmthe braaoh of.aontraat of the operators of **said bua888,**  

### rorthe raaaon that t$q La&$Ialatura haa 

### not dala

### gatidthe 2alltiad CotamlaaIonthe aughority to requ$r? that 

### tJpeof lxtsurenoe.

**APPROVEDAUG--**

**4, 1939**  **Yours** 

### very truly

**~TTGR&Y GF3WtAL**  **OF T2XAB**