OFFlCEOFTHE,A-lTORNEYGENERALOFTEXA!S 

AUSTIN 
Roxwabls &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 QORjunation with 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 night arise by remson of 

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~ibr use of the autoProbil.e*. 

*ormI?o. ?6expmmaly pfovi4es fbr cmiersge ot 

tbi irrrruced-for liabili&y both as to bodily injury a@ 

property .demsge,llWtda however, to 'that %mused. by mmldqnt 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 bzeaah of ac+aF 

traat oi:.otirla ; suoh a8 you &am outlined lu:.oitw~lo2ta 

(m).,:.:(b) ant&r We hate 8eriaue dmibts~~etier swh aontq& Xiability~wuld bo~apgcopriatelp 00~sreQ'in agolii 

of lkblllty insuranoe oomring parli0ul.w motor btwms, 

M-them.wuld wem to.be but little relationshiy# bstueen 

the.tort liabllity.whioh might 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. 

fin youy 16st prqraph you askt 

*'Ii the said l&mu 76 is not broad 

enough to oomn? these lfsbflitias then 

two moe$ reapeotfully request the Attorney' Oenersl of Texw, aa legal. advisor 

to the Commission, to tnzggest such 

ohm&es in Pow 76 a8 he may think neuemary to proteat passengers with're-~ 

'spot ..W,the liabilities mentioned 

~kboWed? 
Without ,QWIB~~~ oh the ~usetion as to whether or 

not the CegMlatur~ml&pavperl~ rsquiremotorbue8&mpadee ta wsrry ix2Bur8uw or a bond to i2ideauliry them8elve8 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 Commieeioa eo 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 workPLoDa -8pmp8hivaticm ihBuran88. 8eouon ii rwires that ownere or, operators. 0r MtoT bueees suet -prooura liability:. 

.dprop er tp dwa ge inegr a no e~ l ~folnde~~%tythoappll-, 

oqt age%nst lose by reason og any pere+mal injury to my perBoa r0r 1088 or daorags'.to th8 .pmpe'rty Of suy~&8reon 

other t&n the asqared, or hia~aa~loy8e8~ . ‘i. baa&on 

olabs for loss ‘or deeage from pereonsl ‘%$ary. tar .looe of, 

or 4 

eaid p01 Y 

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 s 
Honorable 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 effident operation OS this l&w.* 

Wo do not believe that the tvo gwmrel provisions 

8bwa@~otadehouldbs aonetruadw asto giv~theFt&mad 

Commfedon authority to phm the added burden 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~lonS wntainsd in 2ubeeotforur (a) sa4 (d) of 8titfOn 4 of th6 hot above quoted. 

*A delegation of paw&; whenperdttudwet ; be l x prr nby eed o ~eaw& r 

express terms, or by oleer lmplloa%lon. 

Aa edzoinletratlte~age&y hen only maoh 

'authority, eepeolellywithreepao~ ti 

.fhe mgalatlon end oontkol o< private 

rights end property, EM ls olearlp delegated, or neoeesarily implied fromthat 

sxpraasly delegated. Aad V&.I?P astatute delegating a power direote the JMXIner or It8 exerolee, that metml ie'ex- 

~' oluelve or all others.- 

& the on80 of 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'aight pay their sgentB,esidt 

*hnd these etatu%ee hsvhg undertekenin~ocmsldereble dotall to proaoribe the powers cthd dutiee of the 

Eoard sebtlve to auoh m rata 
Rmorable JEWS E. Kilday, Page 2 

only, without #&vb authority to them 

to fir or regulate the ditiarent elsanente 0r 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., .speakfng for 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 

h im b y la w. Xl8 .a o tin u l xo em o f 

powers aon$erred ako not otliolml aot6, 

aud -1t l8 not neaemmry .that the axe* 

oiee or pomra be negatived irt orbr.to 

. re8tralm the mope of their exwolsa.*. 

Other mdhoritlee to the 88mi m&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.road Commitsiomo ,^.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 .the objeotlves 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 hadunderaonaldaratlan Wm 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 aaoordanae with 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., at page 608; said:. 

*It 1s oomedetl that t&hefSeot of 

tha provlalona oontalnod in tl+.mdoraentent la 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 Court refbie&~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. Artl018 9Ub lathe Aat apply&g to motortruoka, and fo mmlogot18 to 911a, whloh applies to motor buaaea. 

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, ror the raaaon that t$q La&$Ialatura haa not dalagatid the 2alltiad CotamlaaIonthe aughority to requ$r? that 

tJpe of lxtsurenoe. 

APPROVEDAUG-- 4, 1939 

Yours very truly 

~TTGR&Y GF3WtAL OF T2XAB