Humble Oil & Refining Co. v. Martin
Supreme Court of Texas
222 S.W.2d 995 (1949)
An unattended, unoccupied car parked at a gas station owned by Humble Oil Company (defendant) rolled down a hill and struck Martin (plaintiff) and his two daughters; the jury found Humble liable for the negligence of the station manager Schneider's employee, who failed to take basic precautions preventing the accident. Humble and Schneider operated under a "Commission Agency Agreement," primarily meant to let Schneider sell Humble's products, but which gave Humble significant control over the station's day-to-day operations, including setting hours, providing equipment and advertising, and requiring Schneider to perform whatever duties Humble required. The court of civil appeals found a master-servant relationship existed and affirmed Humble's liability; Humble appealed.
Whether an oil company is liable for the negligence of an employee of a gas station manager with whom the oil company contracts to sell their products, when the oil company has power over the gas station's daily business.