Gordon Westergren, Sandy Westergren, Richard Helmle, Carole Helmle, Chris Miller, Kimberly Miller, Peter Sundt, and Brian Johnson v. Houston Pilots Association , 566 S.W.3d 7 ( 2018 )


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  • Affirmed and Opinion filed August 7, 2018.
    In The
    Fourteenth Court of Appeals
    NO. 14-17-00046-CV
    GORDON WESTERGREN, SANDY WESTERGREN, RICHARD
    HELMLE, CAROLE HELMLE, CHRIS MILLER, KIMBERLY MILLER,
    PETER SUNDT, AND BRIAN JOHNSON, Appellants
    V.
    HOUSTON PILOTS ASSOCIATION, Appellee
    On Appeal from the 234th District Court
    Harris County, Texas
    Trial Court Cause No. 2015-25755A
    OPINION
    In this appeal from a summary judgment, we address whether appellee
    Houston Pilots Association is entitled to immunity from liability under federal
    maritime law or Texas statutory law for claims arising from the collision of two
    vessels on the Houston Ship Channel. At the time of the collision, two members of
    Houston Pilots were piloting the vessels in heavy fog near Morgan’s Point.
    Appellants, homeowners living near the site, allege that the collision released 88,200
    gallons of methyl tertiary butyl ether (MTBE), causing environmental damage to
    their property and sickening two of them. Appellants contend that Houston Pilots’
    alleged negligence was a cause of the collision because the association failed to train
    and supervise the pilots, and it undertook to implement navigation standards but
    failed to do so.
    The Houston Pilots Licensing and Regulatory Act provides that a pilot is not
    liable, either directly or as a member of an organization of pilots, for any claim that
    (1) arises from an act or omission of another pilot or organization of pilots, and (2)
    relates directly or indirectly to pilot services. Tex. Transp. Code Ann. § 66.082
    (West 2011). We conclude that section 66.082, rather than federal maritime law,
    governs the claims asserted by appellants and provides Houston Pilots immunity
    from liability. We therefore affirm the trial court’s summary judgment.
    BACKGROUND
    The Houston Ship Channel stretches approximately 55 nautical miles from the
    sea buoy offshore Galveston to the turning basin at the Port of Houston. The main
    channel is 530 feet wide. Maneuvering vessels in and out of the ship channel
    requires special expertise and knowledge due to the channel’s size and the number
    of vessels traversing its waterways. Houston Pilots1 is an association that provides
    compulsory pilots to guide vessels in and out of the ship channel.2 The job of a
    Houston pilot is to bring the vessel from the sea to the dock, or vice versa, as safely
    1
    Appellants refer to appellee as Houston Pilots Association, though appellee states in its
    brief that its correct name is Houston Pilots.
    2
    Certain vessels are required by law to obtain pilot services into and out of the Port of
    Houston. Tex. Transp. Code § 66.069.
    2
    as possible.3
    On March 9, 2015, Captain Larry Evans piloted the M/T Carla Maersk
    outbound, while Captain George Reeser piloted the M/V Conti Peridot inbound up
    the ship channel. When heavy fog rolled in and reduced visibility significantly,
    Houston Pilots suspended pilot boardings of inbound ships. But vessels already
    under way, like the Carla Maersk and the Conti Peridot, continued on. As the Carla
    Maersk and the Conti Peridot neared each other just south of Morgan’s Point, the
    Conti Peridot crossed the channel into the path of the Carla Maersk and the two
    collided. As a result of the collision, MTBE spilled from the cargo of the Carla
    Maersk.        Appellants (the Homeowners) contend that the spill reached their
    properties, requiring a significant amount of remediation and causing personal injury
    to two of them.
    The Homeowners sued Houston Pilots and others, asserting claims under
    Texas law for negligence, gross negligence, negligent trespass, and private
    nuisance.4       With regard to Houston Pilots, the Homeowners alleged that the
    association was negligent in multiple respects that caused the collision, including
    that it negligently failed to develop and promulgate navigational standards in the
    ship channel and failed to train and supervise the individual pilots navigating the
    vessels.
    Houston Pilots moved for traditional summary judgment on two grounds.
    3
    Pilots have long occupied a unique place in maritime history. As one commentator
    described: “For as long as men have taken to the sea, pilots have guided their journeys. Pilots
    were known to antiquity, and rules for their conduct were provided as early as Roman times and
    the Middle Ages. The first instance of mandatory pilotage was probably made in the Ordonances
    de Wisbuy . . . in the twelfth century.” David J. Bederman, Compulsory Pilotage, Public Policy,
    and the Early Private International Law of Torts, 64 TUL. LAW REV. 1033, 1041 (1990).
    4
    In their petition, the Homeowners specifically disclaimed seeking any relief under federal
    law.
    3
    First, it contended that under federal maritime law as set forth in Guy v. Donald, 
    203 U.S. 399
    (1906) and its progeny, pilot associations are immune from vicarious
    liability or direct liability related to the alleged negligence of its pilots. Second,
    Houston Pilots argued that as an unincorporated association of independent
    contractor pilots, it has no legal existence separate from its individual pilots. As a
    result, any judgment against it for its own negligence would in effect be a judgment
    against the individual pilots jointly and severally, triggering the immunity the
    Legislature provided to pilots in section 66.082 of the Transportation Code.
    The Homeowners responded to the motion, arguing that the rule set forth in
    Guy v. Donald and its progeny did not insulate Houston Pilots from liability for its
    own direct negligence. The Homeowners further argued that section 66.082 did not
    provide immunity because a fact issue exists regarding whether Houston Pilots is an
    unincorporated association or a general partnership under Texas law. Each side
    raised objections to the other side’s evidence, though the trial court did not rule on
    the objections. The trial court granted Houston Pilots’ motion without stating the
    grounds for its decision. The trial court then severed the claims against Houston
    Pilots, making the summary judgment final. This appeal followed.
    ANALYSIS
    The Homeowners raise two issues on appeal: (1) whether Texas law provides
    complete immunity to pilot associations for the direct negligence of the organization
    itself; and (2) whether a genuine issue of material fact exists as to Houston Pilots’
    status as a partnership under Texas law and, if so, whether Houston Pilots may be
    held vicariously liable for the actions of its member pilots. We address these issues
    together.
    4
    I.    Standard of review
    We review a trial court’s order granting a traditional summary judgment de
    novo. Valence Operating Co. v. Dorsett, 
    164 S.W.3d 656
    , 661 (Tex. 2005); Mayer
    v. Willowbrook Plaza Ltd. P’ship, 
    278 S.W.3d 901
    , 908 (Tex. App.—Houston [14th
    Dist.] 2009, no pet.). If the trial court grants summary judgment without specifying
    the grounds, we affirm the judgment if any of the grounds presented are meritorious.
    Dow Chem. Co. v. Francis, 
    46 S.W.3d 237
    , 242 (Tex. 2001). We take as true all
    evidence favorable to the nonmovant, indulging every reasonable inference and
    resolving all doubts in the nonmovant’s favor. Dias v. Goodman Mfg. Co., L.P., 
    214 S.W.3d 672
    , 675 (Tex. App.—Houston [14th Dist.] 2007, pet. denied).
    To prevail on a traditional motion for summary judgment, the movant has the
    burden of establishing that no genuine issue of material fact exists and that the
    movant is entitled to judgment as a matter of law. Tex. R. Civ. P. 166a(c); Mann
    Frankfort Stein & Lipp Advisors, Inc. v. Fielding, 
    289 S.W.3d 844
    , 848 (Tex. 2009).
    To be entitled to traditional summary judgment, the defendant must conclusively
    negate at least one element of each of the plaintiff’s causes of action or conclusively
    establish each element of an affirmative defense. 
    Dias, 214 S.W.3d at 676
    . Once
    the defendant establishes its right to summary judgment, the burden shifts to the
    plaintiff to present evidence raising a genuine issue of material fact. 
    Id. In this
    case, Houston Pilots moved for summary judgment on its affirmative
    defense of immunity from liability. To establish its right to summary judgment on
    its affirmative defense, Houston Pilots bore the burden of pleading and conclusively
    establishing each element of its immunity defense. See Haver v. Coats, 
    491 S.W.3d 877
    , 881, 883 (Tex. App.—Houston [14th Dist.] 2016, no pet.). As noted above, in
    support of its motion for summary judgment, Houston Pilots cited two bases for
    immunity: the federal rule of Guy v. Donald, 
    203 U.S. 399
    (1906), and section
    5
    66.082 of the Texas Transportation Code. We begin by explaining each source of
    immunity and then address which rule is relevant here.
    II.    Pilot associations have different immunities under federal maritime and
    Texas statutory law.
    In Guy v. Donald, the Supreme Court of the United States established a
    general rule that pilot associations and member pilots are immune from vicarious
    liability under federal maritime law for negligent acts or omissions by other member
    
    pilots. 203 U.S. at 404
    ; see also Dampskibsselskabet Atalanta A/S v. United States,
    
    31 F.2d 961
    , 962 (5th Cir. 1929). In Dampskibsselskabet Atalanta, the Fifth Circuit
    explained the rationale for this rule:
    The fundamental principle underlying the exemption of pilots’
    associations from liability for negligence of their members in
    performing their duties as pilots is that the association exercises no
    control over the manner in which those duties are to be performed, and
    therefore a pilot cannot be said to be an agent of the association in that
    
    respect. 31 F.2d at 962
    . Courts have long applied the Guy rule to afford immunity from
    liability to pilot associations.5 Even if an association has the ability to select,
    discharge, and discipline its members, this general control over a pilot does not
    defeat the Guy rule. “To be liable, the association must control the pilot’s actions
    while [the pilot is] discharging his professional duties onboard the vessel.” In re
    5
    See, e.g., McGrath v. Nolan, 
    83 F.2d 746
    , 750 (9th Cir. 1936); Dampskibsselskabet
    
    Atalanta, 31 F.2d at 962
    ; J.W. Westcott 
    Co., 333 F. Supp. 2d at 606
    ; In re Lloyd’s Leasing, Ltd.,
    
    764 F. Supp. 1114
    , 1139 (S.D. Tex. 1990), aff’d sub nom. Lloyd’s Leasing v. Bates, 
    902 F.2d 368
    (5th Cir. 1990); McKeithen v. The S.S. Frosta, 
    441 F. Supp. 1213
    , 1220 (E.D. La. 1977); In re
    China Union Lines, Ltd, 
    342 F. Supp. 426
    , 431 (E.D. La. 1971); see also THOMAS J. SCHOENBAUM,
    ADMIRALTY AND MARITIME LAW § 13-5 p. 96 (5th ed. 2011) (“The well-established rule is that
    pilot associations are immune to vicarious liability for the torts of their members. . . . . Pilots’
    associations are also not liable for negligently assuring the competence of their members because
    as professional associations they make no guarantee of the professional conduct of their members
    to the general public.”).
    6
    J.W. Westcott Co., 
    333 F. Supp. 2d 604
    , 606 (E.D. Mich. 2003).
    The Texas Legislature has likewise provided immunity for claims relating to
    pilot services along the Houston Ship Channel, though the contours of this immunity
    differ from the Guy rule.       The Houston Pilots Licensing and Regulatory Act
    provides:
    A pilot is not liable directly or as a member of an organization of pilots
    for any claim that:
    (1)   arises from an act or omission of another pilot or
    organization of pilots; and
    (2)   relates directly or indirectly to pilot services.
    Tex. Transp. Code § 66.082.6 The Act defines pilot services as “acts of a pilot in
    conducting a vessel through the navigable water in this state and the ports in which
    the pilot is licensed or certified as a pilot.” Tex. Transp. Code § 66.002(6). The
    Legislature expressly stated that the purpose of the Act is to “(1) in the public
    interest, stimulate and preserve maritime commerce on the pilotage grounds of this
    state by limiting and regulating the liability of pilots; and (2) maintain pilotage fees
    at reasonable amounts.” Tex. Transp. Code § 66.081.
    III.   Texas statutory law, rather than federal maritime law, provides the rule
    of immunity here.
    Initially, we must decide whether to use federal maritime or Texas statutory
    law in determining whether Houston Pilots is immune from liability for the claims
    at issue. We begin with the premise that torts occurring on navigable waters of the
    United States fall generally within the law of admiralty; thus, “[a]bsent a relevant
    6
    The Legislature enacted similar immunity statutes for pilots working in Galveston,
    Brazoria County, Jefferson and Orange County, and Corpus Christi. See Tex. Transp. Code
    §§ 67.082, 68.082, 69.082, 70.082.
    7
    statute, the general maritime law, as developed by the judiciary, applies.” East River
    S.S. Corp. v. Transam. Delaval, Inc., 
    476 U.S. 858
    , 865 (1986); see also
    Schlumberger Tech. Corp. v. Arthey, 
    435 S.W.3d 250
    , 253 (Tex. 2014) (test for
    whether admiralty law applies focuses on both location and connection with
    maritime activity).
    But this case also involves the unique area of pilotage. “Pilotage is the art of
    navigating ships into and out of ports or along rivers, bays, harbors and other special
    waters.” Interport Pilots Agency, Inc. v. Sammis, 
    14 F.3d 133
    , 136 (2d Cir. 1994).
    When it passed the Lighthouse Act of 1789, the first Congress determined that pre-
    existing state pilotage laws were satisfactory, making federal regulation of pilotage
    unnecessary. Kotch v. Bd. of River Port Pilot Com’rs for Port of New Orleans, 
    330 U.S. 552
    , 559 (1947); Anderson v. Pac. Coast S.S. Co., 
    225 U.S. 187
    , 195 (1912).
    Thus, States retain their sovereign authority to regulate pilotage where Congress has
    not acted to displace their laws. See Olsen v. Smith, 
    195 U.S. 332
    , 341 (1904)
    (“[A]lthough state laws concerning pilotage are regulations of commerce, ‘they fall
    within that class of powers which may be exercised by the states until Congress has
    seen fit to act upon the subject.’”); Cooley v. Bd. of Wardens of Port of Philadelphia
    ex rel. Soc. for Relief of Distressed Pilots, 53 U.S. (12 How.) 299, 320 (1852) (“[T]he
    mere grant to Congress of the power to regulate commerce, did not deprive the states
    of power to regulate pilots, and . . . although Congress has legislated on this subject,
    its legislation manifests an intention, with a single exception, not to regulate this
    subject, but to leave its regulation to the several states.”); Gillis v. Louisiana, 
    294 F.3d 755
    , 762 (5th Cir. 2010).
    In 1983, Congress enacted a statute that provides: “pilots in the bays, rivers,
    harbors, and ports of the United States shall be regulated only in conformity with the
    laws of the States.” 46 U.S.C. § 8501(a). Section 8501 expresses Congress’s
    8
    continuing intent not to limit States’ authority to regulate pilotage unless another
    federal statute provides otherwise. See 
    Gillis, 294 F.3d at 761
    . To date, Congress
    has preempted state regulation of pilotage in two instances: (1) with respect to
    vessels on the Great Lakes, 46 U.S.C. § 9302; and (2) with respect to American-
    flagged vessels sailing between American ports, 46 U.S.C. § 8502. See 
    Sammis, 14 F.3d at 136
    ; Continental Ins. Co. v. Cota, No. 08-2052-SC, 
    2010 WL 383367
    , at *4
    (N.D. Cal. Jan. 27, 2010).7 Neither instance is present in this case.
    In post-submission briefing, Houston Pilots argues that federal maritime law
    governs and that section 66.082 simply supplements that law.                   We disagree.
    Regulation of pilotage on the Houston Ship Channel is expressly left to the State.
    See 46 U.S.C. § 8501(a). Texas has enacted a relevant statute. We therefore apply
    the language of that statute to the Homeowners’ claims. See East River S.S. 
    Corp., 476 U.S. at 864
    (holding general maritime law applies “absent a relevant statute”);
    Continental Ins. Co., 
    2010 WL 383367
    , at *5 (holding California statute requiring
    shipowners who do not purchase trip insurance to defend, indemnify, and hold
    harmless compulsory pilots applied and was not preempted by general maritime
    law).
    IV.     Houston Pilots is immune from liability for the Homeowners’ claims
    under section 66.082.
    Section 66.082 provides that a pilot is not liable “directly or as a member of
    an organization of pilots” for any claim “aris[ing] from an act or omission of another
    pilot or organization of pilots” that “relates directly or indirectly to pilot services.”
    Tex. Transp. Code § 66.082(1), (2). Neither party has cited, nor has our research
    revealed, any decisions construing section 66.082.             Thus, as a matter of first
    7
    See generally Paul G. Kirchner & Clayton L. Diamond, Unique Institutions, Indispensible
    Cogs, and Hoary Figures: Understanding Pilotage Regulations in the United States, 23 U.S.F.
    MAR. L.J. 168, 176 (2011).
    9
    impression, we consider: (1) whether imposing liability on Houston Pilots as an
    unincorporated association or partnership would hold “[a] pilot . . . liable . . . as a
    member of an organization of pilots”; and (2) whether the Homeowners’ claims (a)
    arise from an act or omission of Houston Pilots or another pilot and (b) relate directly
    or indirectly to pilot services as defined in the Act. Houston Pilots had the burden
    to prove each element of this immunity defense conclusively in order to obtain
    summary judgment, and we consider each element in turn. See 
    Haver, 491 S.W.3d at 881
    , 883.
    Our task in construing statutes is to effectuate the Legislature’s expressed
    intent, not to second-guess the policy choices it made or to weigh the effectiveness
    of their results. Ritchie v. Rupe, 
    443 S.W.3d 856
    , 866 (Tex. 2014). We focus on the
    words of the statute, which best reveal legislative intent. 
    Id. “Construing statutes
    as
    written is necessary to predictability in statutory interpretation and to validating the
    public’s trust in and reliance on the words it reads in the statute books.” Marsh USA
    Inc. v. Cook, 
    354 S.W.3d 764
    , 779 (Tex. 2011). We do not view words and phrases
    in isolation; rather we examine the entire act and, when possible, give effect to each
    sentence, phrase, clause and word used. Meritor Automotive, Inc. v. Ruan Leasing
    Co., 
    44 S.W.3d 86
    , 90 (Tex. 2001).
    A.       A judgment against Houston Pilots would hold individual pilots
    liable members of an organization of pilots.
    In its motion for summary judgment, Houston Pilots asserted it was entitled
    to immunity from liability under section 66.082 because it is an unincorporated
    association and, as such, “any judgment against Houston Pilots would in effect be a
    judgment against each and every member jointly and severally, and the satisfaction
    of such judgment would affect each member-pilot equally.” In response, the
    Homeowners assert that a factual dispute exists regarding whether Houston Pilots is
    10
    a general partnership rather than an unincorporated association. If Houston Pilots is
    a partnership, the Homeowners contend it may be sued in its own name and held
    liable separately from its partner pilots, and thus it is not protected by section 66.082.
    Given this factual dispute, the Homeowners assert that summary judgment is
    inappropriate.
    We conclude that any factual dispute regarding partnership status is
    immaterial. The parties agree that Houston Pilots is either an unincorporated
    association or a general partnership. Regardless of which characterization is correct,
    the summary-judgment evidence conclusively proves that a judgment against
    Houston Pilots would result in liability for each of the individual pilots “as a member
    of an organization of pilots.” Tex. Transp. Code § 66.082.
    We begin our analysis of this element by addressing the scope of the summary
    judgment record. The Homeowners objected in the trial court that Houston Pilots
    completely failed to authenticate the exhibits to its motion for summary judgment,
    and they argue on appeal that those exhibits should not be considered. Assuming,
    without deciding, that the exhibits are not part of the summary judgment record, we
    may consider evidence submitted by the non-movants in reviewing the trial court’s
    ruling granting traditional summary judgment. See Tex. R. Civ. P. 166a; Haase v.
    Abraham, Watkins, Nichols, Sorrels, Agosto & Friend, L.L.P., 
    499 S.W.3d 169
    , 177
    (Tex. App.—Houston [14th Dist.] 2016, pet. denied) (holding appellate court may
    affirm traditional summary judgment if, after submission of evidence by non-
    movant, record establishes movant’s right to traditional summary judgment even if
    movant’s evidence, by itself, does not establish movant’s right to traditional
    summary judgment).
    Houston Pilots’ recommended navigation safety guidelines, which are
    attached to the Homeowners’ response, describe Houston Pilots as “[a]n
    11
    unincorporated association of persons licensed by the [S]tate of Texas and the United
    States Coast Guard to serve as ship Pilots on vessels that transit the Houston Ship
    Channel.” “Historically, unincorporated associations were not considered separate
    legal entities and had no existence apart from their individual members.” Cox v.
    Thee Evergreen Church, 
    836 S.W.2d 167
    , 169 (Tex. 1992).                               Although
    unincorporated associations may now sue and be sued in their own names,8 article
    6135 of the revised civil statutes provides that any judgment against such an
    association “shall be as conclusive on the . . . members thereof as if they were
    individually parties to [the] suit[].” Tex. Rev. Civ. Stat. Ann. art. 6135 (West 2010);9
    see Holberg & Co. v. Citizens Nat’l Assurance Co., 
    856 S.W.2d 515
    , 517 (Tex.
    App.—Houston [1st Dist.] 1993, no writ) (“When an individual is doing business
    under an assumed name, a judgment rendered against the unincorporated association
    is binding on the individual.”).10
    Under this statute, a judgment holding the Houston Pilots Association liable
    on the Homeowners’ claims would be conclusive on the individual member pilots
    as if they were parties. Furthermore, the Homeowners could immediately enforce
    such a judgment by execution against the joint property of the member pilots. Tex.
    Rev. Civ. Stat. art. 6136.11 We therefore conclude that a judgment against Houston
    8
    See Tex. Rev. Civ. Stat. Ann. art. 6133 (West 2010); Tex. R. Civ. P. 28.
    9
    Non-profit associations are subject to different statutes not at issue here. Specifically,
    Chapter 252 of the Texas Business Organizations Code codifies the Texas Uniform
    Unincorporated Nonprofit Association Act, Texas’s version of the Uniform Unincorporated
    Nonprofit Association Act. See MT Falkin Invs., L.L.C. v. Chisholm Trail Elks Lodge No. 2659,
    
    400 S.W.3d 658
    , 661 (Tex. App.—Austin 2013, pet. denied).
    10
    See also Compass Bank v. Villarreal, No. L-10-08, 
    2012 WL 13046324
    , at *6 (S.D. Tex.
    Feb. 28, 2012); Long v. United Welding Supply, Inc., No. 01-03-0034-CV, 
    2006 WL 1428823
    , at
    *6 (Tex. App.—Houston [1st Dist.] May 25, 2006, no pet.); Old Republic Ins. Co. v. EX-IM Servs.
    Corp., 
    920 S.W.2d 393
    , 396 (Tex. App.—Houston [1st Dist.] 1996, no writ).
    11
    To execute against the individual property of members, the Homeowners would have to
    serve those members, but the judgment against Houston Pilots would be conclusive as to the
    12
    Pilots as an unincorporated association would hold each pilot “liable . . . as a member
    of an organization of pilots.” Tex. Transp. Code § 66.082.
    According to the Homeowners, however, their response also includes
    evidence indicating that Houston Pilots is a general partnership. Under Texas law,
    “an association of two or more persons to carry on a business for profit as owners
    creates a partnership.” Ingram v. Deere, 
    288 S.W.3d 886
    , 895 (Tex. 2009); see Tex.
    Bus. Orgs. Code Ann. § 152.051(b) (West 2012). Several factors can indicate the
    creation of a partnership, including the right to receive a share of profits and
    participation in or right to control the business. See 
    Ingram, 288 S.W.3d at 895
    (listing statutory factors to be considered). In support of their argument that a fact
    issue exists, the Homeowners cite testimony from Houston Pilots’ representative and
    the two individual pilots involved in the collision explaining how tariffs for pilot
    services are collected and distributed. Specifically, the representative explained that
    a company called “Beatty Street” collects the tariffs, the tariffs are pooled, expenses
    for employees and maintenance are paid, and then any remainder is distributed on
    an equal basis to each full member of Houston Pilots. The members are also allowed
    to participate on committees, and as such make business decisions for the
    organization. The representative denied that the members are partners, instead
    insisting that each pilot is simply an independent contractor.
    The Homeowners correctly point out that whether an arrangement is
    considered a partnership often presents a question of fact. See 
    Ingram, 288 S.W.3d at 898
    (noting difficulty in uniformly applying a “totality-of-the-circumstances” test
    for determining whether partnership exists). The Homeowners are also correct that
    under Texas partnership law, the partnership is a distinct entity that may be sued in
    members’ individual liability. See Tex. Rev. Civ. Stat. arts. 6135, 6137.
    13
    its own name without joinder of the partners. See Tex. Bus. Orgs. Code §§ 152.056,
    152.305; Am. Star Energy & Minerals Corp. v. Stowers, 
    457 S.W.3d 427
    , 429 (Tex.
    2015) (“As an independent entity, a partnership may enter into contracts in its own
    name, may own its own property, and may sue and be sued in its own name.”). As
    discussed above, the same is true of an unincorporated association.
    Yet, even if Houston Pilots were a general partnership, each individual partner
    pilot would be jointly and severally liable for a judgment against the partnership. In
    general, “all partners are jointly and severally liable for all obligations of the
    partnership.”     Tex. Bus. Orgs. Code § 152.304(a).              “This personal liability,
    undoubtedly a[] . . . feature [of the aggregate theory of partnership], is a defining
    characteristic of the partnership form and distinguishes it from other entity types.”
    Am. Star 
    Energy, 457 S.W.3d at 429
    . In addition, a judgment creditor of a general
    partnership can immediately enforce that judgment by execution against the joint
    property of the partners and, in some circumstances, can also execute against the
    individual property of partners without first seeking satisfaction from partnership
    property. 
    Id. at 429–430
    & n.2; see Tex. Bus. Orgs. Code §§ 152.306(b)–(c).12 For
    these reasons, a judgment against Houston Pilots as a general partnership would
    likewise hold each partner pilot “liable . . . as a member of an organization of
    pilots”—a result the Legislature has prohibited. Tex. Transp. Code § 66.082.
    The Homeowners cite Houston Pilots v. Goodwin for the proposition that an
    association can be held liable separately from its members, especially when the
    association is a general partnership. 
    178 S.W.2d 308
    (Tex. App.—Galveston 1944,
    writ dism’d). In Goodwin, members of a Galveston pilots’ association sued Houston
    12
    As with an unincorporated association, a judgment creditor of a partnership cannot
    execute against the individual property of partners without serving them. Tex. Bus. Orgs. Code §
    152.306(a). But the judgment against the partnership generally is conclusive of the individual
    partners’ joint and several liability. 
    Id. § 152.304(a).
    14
    Pilots and its individual member pilots for collecting pilotage fees on vessels that
    entered Bolivar Roads and, after anchoring there, put back to sea without proceeding
    to the Port of Houston. 
    Id. at 309.13
    Houston Pilots and its members filed pleas of
    privilege challenging venue in Galveston County, which the trial court overruled.
    Houston Pilots and its members appealed, and the court of appeals affirmed.
    In the course of analyzing venue as to Houston Pilots, the court of appeals
    determined an inference was warranted that the tort “was committed [in Galveston
    County] by each pilot not only on behalf of himself, but for the joint account of each
    member of the association and so accepted and ratified.” 
    Id. at 314.
    The court
    concluded that Houston Pilots was an unincorporated association and liable as a
    principal for the tortious invasion of the Galveston pilots’ right of pilotage. 
    Id. We agree
    that Houston Pilots as an unincorporated association or partnership
    can be sued separately from its individual member or partner pilots.14 But we do not
    agree with the Homeowners that holding Houston Pilots liable would have no effect
    on the pilots. The Goodwin decision, issued long before the Legislature enacted
    section 66.082, does not address that issue. As we have explained, a judgment
    against Houston Pilots as an unincorporated association or a general partnership
    would also impose liability on the pilots as members or partners. Accordingly, the
    summary-judgment evidence conclusively proved this element of the statutory
    defense.
    13
    Bolivar Roads is a “roadstead or protected anchorage inside the harbor lines of Galveston
    Harbor.” 
    Goodwin, 178 S.W.2d at 309
    . In 1942, due to World War II, ships anchored in Bolivar
    Roads for safety or to be put into convoys. 
    Id. 14 See,
    e.g., Tex. Bus. Orgs. Code §§ 152.056, 152.305; Tex. Rev. Civ. Stat. art. 6133;
    Smith v. Houston Pilots, No. H-13-0565, 
    2014 WL 3534695
    , at *4 (S.D. Tex. July 16, 2014) (suit
    involving claims by individual pilot against association for personal expenses pilot had to pay to
    association that he claimed were “double-dipping”).
    15
    B.     The Homeowners’ claims arise from alleged acts or omissions of
    other pilots or of an organization of pilots.
    We also conclude that as a matter of law the Homeowners’ claims arise from
    “an act or omission of another pilot or an organization of pilots.” Tex. Transp. Code
    § 66.082(1). The Homeowners pleaded claims of negligence, gross negligence,
    trespass, and private nuisance due to Houston Pilots’ alleged failure to, among other
    things: (1) utilize reasonable care in undertaking and carrying out the development
    and promulgation of navigation standards in the Houston Ship Channel; (2) utilize
    reasonable care in training and supervising the individual pilots; (3) properly operate
    the Carla Maersk and the Conti Peridot; (4) properly operate the two vessels in a
    manner that the collision would not occur; and (5) properly inspect the vessel to
    assure equipment and personnel were fit. As pleaded, these claims seek to hold
    Houston Pilots vicariously liable for acts or omissions of its member pilots who
    operated the vessels as well as directly liable for its own acts or omissions as an
    organization of pilots.
    The Homeowners contend that section 66.082 is best understood as a
    codification of Guy v. Donald that applies only to “vicarious liability of pilots,
    whether individually or as a member of an association of pilots, for the acts of
    another pilot.” But the Homeowners’ reading of the statute does not give effect to
    the second part of section 66.082(1), which grants immunity from liability for any
    claim that “arises from an act or omission of another pilot or organization of pilots.”
    Tex. Transp. Code § 66.082(1) (emphasis added). We construe the words act or
    omission “of an organization of pilots” to encompass allegations that Houston Pilots
    as an organization did not, for example, use reasonable care in developing navigation
    standards or in training and supervising individual pilots. See Meritor 
    Automotive, 44 S.W.3d at 90
    (when possible, court should construe statute to give effect to each
    sentence, phrase, clause, and word used).
    16
    C.      The Homeowners’ claims relate to pilot services.
    Finally, as a matter of law the Homeowners’ claims “relate[] directly or
    indirectly to pilot services” as required by section 66.082(2). “Pilot services” are
    “acts of a pilot in conducting a vessel through the navigable water . . . and the ports
    in which the pilot is licensed . . . .”           Tex. Transp. Code § 66.002(6).              The
    Homeowners’ petition shows that they seek to hold Houston Pilots liable for acts
    and omissions regarding vessel travel through the Houston Ship Channel. They
    argue that these alleged acts and omissions are not in fact pilot services because the
    “act of a pilot in conducting a vessel through navigable waters is altogether separate
    and apart from formulating and implementing ‘predetermined ship movement
    strategies.’” We disagree. The statute applies to acts or omissions that relate
    “directly or indirectly” to pilot services.             Tex. Transp. Code § 66.082(2).
    Formulating and implementing ship movement strategies for pilots’ use in the
    navigable waters of this State, including the Port of Houston, relates at least
    indirectly to “the acts of a pilot in conducting a vessel through” those waters. Tex.
    Transp. Code § 66.002(6).
    Because the Homeowners have asserted claims described in section 66.082(1)
    and (2) and those claims, if successful, would result in individual pilots being liable
    as members of Houston Pilots, the trial court properly granted summary judgment
    in favor of Houston Pilots on its affirmative defense of immunity from liability.15
    15
    In its briefing on appeal and at oral argument, Houston Pilots asserts that it cannot be
    held liable for the direct negligence claims asserted by the Homeowners in this case because it has
    no duty to promulgate navigation standards for the Houston Ship Channel or to oversee and train
    individual pilots. We do not address this argument for two reasons. First, Houston Pilots did not
    move for summary judgment on the ground that it owed no duty to the Homeowners and we cannot
    affirm a grant of summary judgment on a ground not included in the motion. Sci. Spectrum, Inc.
    v. Martinez, 
    941 S.W.2d 910
    , 912 (Tex. 1997); Olmstead v. Napoli, 
    383 S.W.3d 650
    , 652 (Tex.
    App.—Houston [14th Dist.] 2012, no pet.) (“When reviewing a summary judgment motion, we
    cannot read between the lines or infer from the pleadings or evidence any grounds for summary
    judgment other than those expressly set forth before the trial court.”). Second, on these facts,
    17
    We overrule the Homeowners’ first and second issues.
    CONCLUSION
    Having overruled each of the Homeowners’ issues on appeal, we affirm the
    trial court’s summary judgment in favor of Houston Pilots.
    /s/     J. Brett Busby
    Justice
    Panel consists of Chief Justice Frost and Justices Busby and Wise.
    section 66.082 provides immunity for the acts and omissions of the organization itself as discussed
    above. We therefore need not reach the question of duty.
    18
    

Document Info

Docket Number: 14-17-00046-CV

Citation Numbers: 566 S.W.3d 7

Filed Date: 8/7/2018

Precedential Status: Precedential

Modified Date: 8/7/2018

Authorities (25)

Anderson v. Pacific Coast Steamship Co. , 32 S. Ct. 626 ( 1912 )

Olsen v. Smith , 25 S. Ct. 52 ( 1904 )

Kotch v. Board of River Port Pilot Comm'rs for Port of New ... , 330 U.S. 552 ( 1947 )

DAMPSKIBSSELSKABET ATALANTA A/S v. United States , 31 F.2d 961 ( 1929 )

Houston Pilots v. Goodwin , 1944 Tex. App. LEXIS 1145 ( 1944 )

In Re the Complaint of China Union Lines, Ltd. , 342 F. Supp. 426 ( 1971 )

Old Republic Insurance Co. v. EX-IM Services Corp. , 920 S.W.2d 393 ( 1996 )

In Re J.W. Westcott Co. , 333 F. Supp. 2d 604 ( 2003 )

interport-pilots-agency-inc-charles-jonas-captain-francis-burn-jr , 14 F.3d 133 ( 1994 )

East River Steamship Corp. v. Transamerica Delaval Inc. , 106 S. Ct. 2295 ( 1986 )

Guy v. Donald , 27 S. Ct. 63 ( 1906 )

In Re Lloyd's Leasing Ltd. , 764 F. Supp. 1114 ( 1990 )

Marsh USA Inc. v. Cook , 2011 Tex. LEXIS 930 ( 2011 )

Valence Operating Co. v. Dorsett , 48 Tex. Sup. Ct. J. 671 ( 2005 )

McKeithen v. SS FROSTA , 441 F. Supp. 1213 ( 1977 )

Holberg & Co. v. Citizens National Assurance Co. , 1993 Tex. App. LEXIS 1375 ( 1993 )

Ingram v. Deere , 52 Tex. Sup. Ct. J. 1030 ( 2009 )

in-the-complaint-and-petition-of-lloyds-leasing-limited-as-owner-and , 902 F.2d 368 ( 1990 )

Science Spectrum, Inc. v. Martinez , 941 S.W.2d 910 ( 1997 )

Mayer Ex Rel. Mayer v. Willowbrook Plaza Ltd. Partnership , 2009 Tex. App. LEXIS 1110 ( 2009 )

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