Court Opinion

ID: 9765899
Source: CourtListenerOpinion
Date Created: 2023-08-29 04:24:05.781624+00
Date Added: 2024-06-11T13:09:01.683522
License: Public Domain

SPEARS, Justice,
concurring.
I concur in the result reached by the majority, because there were no findings that Glen W. Light violated the Deceptive Trade Practices Act.
The rule in Texas has always been that an agent is personally liable for his own torts. See Leonard v. Abbott, 366 S.W.2d 925 (Tex.1963); Tarrant v. Walker, 140 Tex. 249, 166 S.W.2d 900 (1942); Poole v. The H. & T.C. Ry. Co., 58 Tex. 134 (1882); Baker v. Wasson, 53 Tex. 150 (1880); Mayfield v. Averitt, 11 Tex. 140 (1853); Dr. Salsbury’s Laboratories v. Bell, 386 S.W.2d 341 (Tex.Civ.App.—Dallas 1964, writ dism’d w.o.j.); see also RESTATEMENT (SECOND) OF AGENCY § 348 (1958). This rule also applies when the agent is an officer or shareholder of the principal corporation. See, e.g., Bower v. Yellow Cab Co., 13 S.W.2d 708 (Tex.Civ.App.—El Paso 1929, writ ref’d); Penroc Oil Corp. v. Donahue, 476 S.W.2d 849 (Tex.Civ.App.—El Paso 1972, writ ref’d n.r.e.); Western Rock Co. v. Davis, 432 S.W.2d 555 (Tex.Civ.App.—Fort Worth 1968, no writ); Mayflower Investment Co. v. Stephens, 345 S.W.2d 786 (Tex.Civ.App.—Dallas 1960, writ ref’d n.r.e.).
Liability in these cases is based on the agent’s own actions, not his status as agent. There is no sound reason to treat agents differently when they violate the Deceptive Trade Practices Act. See United States Steel Corp. v. Fiberglass Specialties, Inc., 638 S.W.2d 950 (Tex.App.—Corpus Christi 1982, no writ); Portland Savings & Loan Ass’n v. Bevill, Bresler & Schulman Government Securities, Inc., 619 S.W.2d 241 (Tex.Civ.App.—Corpus Christi 1981, no writ). It is not relevant that the contract was with the corporation, because a cause of action under the Deceptive Trade Practices Act does not depend on the contract between the parties. Smith v. Baldwin, 611 S.W.2d 611, 614 & n. 4 (Tex.1980).
The majority opinion holds that “... there being no findings of fact that Light violated the Deceptive Trade Practices Act, he cannot be personally liable.” As I understand this, the converse would be that a person who does violate the Deceptive Trade Practices Act will be individually liable, even though he acts as an agent. Holding agents liable for their own violations of the Act is consistent with the common law rule which has been the law in this state for over a century.
By recognizing that Light would be individually liable if there were findings that he violated the Deceptive Trade Practices Act, the majority has implicitly overruled the contrary holding in Karl & Kelly Co. v. McLerran, 646 S.W.2d 174 (Tex.1983). Karl & Kelly Co. was wrongly decided. This court held that when the contract was with the corporation, the agents were not personally liable for their own violations of the Deceptive Trade Practices Act, absent evidence that the corporation was merely their alter ego. The opinion inadvertantly overlooked the import of our numerous common law decisions holding agents liable for their own misconduct, and the argument was neither briefed nor raised on motion for rehearing.
Although considerations of stare decisis would normally counsel against overruling an opinion of this court after such a short time, a clearly erroneous decision should be corrected.