Allright, Inc. v. Elledge, 515 S.W.2d 266 (Tex. 1974). · Go Syfert
Allright, Inc. v. Elledge, 515 S.W.2d 266 (Tex. 1974). Cases Citing This Book View Copy Cite
G Cite
87 citation events (21 in the last 25 years) across 10 distinct courts.
Strongest positive: Cornelius Joe Ergonis and Linda Ergonis v. William Thomas Sultzbaugh, Sharon Elliott Sultzbaugh A/K/A Sharon Carr, Ebby Halliday Real Estate, Inc., Kathy Gibson, Paul Wood Inspection Group, Inc., Caleb Wood, and James Alan Peterson (txctapp2, 2026-03-19)
Treatment trajectory · 1974 → 2026 · click a year to view as-of
1974 2000 2026
Top citers, strongest first. 38 distinct citers. How cited ↗
discussed Cited as authority (rule) Cornelius Joe Ergonis and Linda Ergonis v. William Thomas Sultzbaugh, Sharon Elliott Sultzbaugh A/K/A Sharon Carr, Ebby Halliday Real Estate, Inc., Kathy Gibson, Paul Wood Inspection Group, Inc., Caleb Wood, and James Alan Peterson
txctapp2 · 2026 · confidence medium
Courts considering such provisions “look to the relationship of the parties and their bargaining power” and “consider the entire atmosphere in which the agreement was made.” Id.; Allright, Inc. v. Elledge, 515 S.W.2d 266, 267 (Tex. 1974).
cited Cited as authority (rule) Tom Maddux, Individually and Dba Lost Prairie Cycles AKA Thomas Earl Maddux v. Michael D. Reid
Tex. App. · 2015 · confidence medium
Allright, Inc. v. Elledge, 515 S.W.2d 266, 268 (Tex. 1974).
cited Cited as authority (rule) Rolando Rafael Saenz v. Maria Graciela Saenz Martinez, Individually and as Trustee of the Rolando Rafael Trust Pedro I. Saenz, Jr.
Tex. App. · 2008 · confidence medium
Servs., Inc., 257 S.W.3d 228, 232-33 (Tex. 2008) (citing Allright, Inc. v. Elledge, 515 S.W.2d 266, 267 (Tex. 1974)).
cited Cited as authority (rule) In Re Lyon Financial Services, Inc.
Tex. · 2008 · confidence medium
Allright, Inc. v. *233 Elledge, 515 S.W.2d 266, 267 (Tex.1974).
discussed Cited as authority (rule) OXY USA, Inc. v. Southwestern Energy Production Co. (2×)
Tex. App. · 2005 · confidence medium
In cases where a party has contracted to indemnify itself against its own future negligence, the supreme court has held that it does not violate public policy, Allright, Inc. v. Elledge, 515 S.W.2d 266, 267 (Tex.1974); Ohio Oil Co. v. Smith, 365 S.W.2d 621, 624 (Tex.1963), except where there is a disparity of bargaining power such that one party is so disadvantaged that it is essentially forced to agree to the exculpatory provision.
discussed Cited as authority (rule) Ghidoni v. Thomas (In Re Ghidoni)
5th Cir. · 2004 · confidence medium
In point of fact, however, “[pjarties may contract to release future liability unless the agreement is unconstitutional, violates statutory law, or is against public policy.” Allright, Inc. v. Elledge, 515 S.W.2d 266, 267 (Tex.1974).
discussed Cited as authority (rule) Marine Indemnity Insurance Company of America v. Lockwood Warehouse & Storage, Maxwell House Coffee Company, Kraft General Food, Inc. v. Kraft General Foods, Inc Grand Lockwood Partners Limited Partnership Third Coast Packaging Igi Baychem, Inc Oxid, Inc. Rda International, Inc. Vista Chemical v. Enterplast, Inc. H. Muehlstein & Co., Intervenor
3rd Cir. · 1997 · confidence medium
Allright, Inc. v. Elledge, 515 S.W.2d 266, 267 (Tex.1974); Ampco Auto Parks, Inc. v. Williams, 517 S.W.2d 401, 403 (Tex.Civ.App.--Dallas 1974, writ ref'd n.r.e.); West v. Slaughter, 384 S.W.2d 185, 187 (Tex.Civ.App.--Waco 1964, writ ref'd n.r.e.).
cited Cited as authority (rule) Solis v. Evins
Tex. App. · 1997 · confidence medium
Allright, Inc. v. Elledge, 515 S.W.2d 266, 267 (Tex.1974); Crowell v. Housing Auth. of the City of Dallas, 495 S.W.2d 887, 889 (Tex.1973); Derr Constr.
discussed Cited as authority (rule) Marine Indemnity Insurance Co. of America v. Lockwood Warehouse & Storage
5th Cir. · 1997 · confidence medium
Allright, Inc. v. Elledge, 515 S.W.2d 266, 267 (Tex.1974); Ampco Auto Parks, Inc. v. Williams, 517 S.W.2d 401, 403 (Tex.Civ.App.— Dallas 1974, writ ref'd n.r.e.); West v. Slaughter, 384 S.W.2d 185, 187 (Tex.Civ.App.—Waco 1964, writ refd n.r.e.).
cited Cited as authority (rule) Ely v. General Motors Corp.
Tex. App. · 1996 · confidence medium
E.g., Allright, Inc. v. Elledge, 515 S.W.2d 266, 267 (Tex.1974); Fox Elec.
discussed Cited as authority (rule) Dillee v. Sisters of Charity of Incarnate Word Health Care System (2×) also: Cited "see"
Tex. App. · 1995 · confidence medium
Allright, Inc. v. Elledge, 515 S.W.2d 266, 267 (Tex.1974); Crowell v. Housing Auth. of Dallas, 495 S.W.2d 887, 889 (Tex.1973) (holding that such disparity existed where low income tenant had no choice but to accept lease terms to get decent housing accommodations).
cited Cited as authority (rule) Valero Energy Corp. v. M.W. Kellogg Construction Co.
Tex. App. · 1993 · confidence medium
Allright, Inc. v. Elledge, 515 S.W.2d 266, 267 (Tex.1974); Crowell v. Housing Auth. of the City of Dallas, 495 S.W.2d 887, 889 (Tex.1973); Derr Constr.
cited Cited as authority (rule) Fox Electric Co. v. Tone Guard Security, Inc.
Tex. App. · 1993 · confidence medium
Allright, Inc. v. Elledge, 515 S.W.2d 266, 267 (Tex.1974); Interstate Fire Ins. v. First Tape, Inc., 817 S.W.2d 142, 145 (Tex.App.—Houston [1st Dist.] 1991, writ denied).
cited Cited as authority (rule) Doe v. SmithKline Beecham Corp.
Tex. App. · 1993 · confidence medium
Allright, Inc. v. Elledge, 515 S.W.2d 266, 267 (Tex.1974).
cited Cited as authority (rule) Jane Doe v. SmithKline Beecham Corporation, SmithKline Beecham Clinical Laboratories, Inc. and the Quaker Oats Company
Tex. App. · 1993 · confidence medium
Allright, Inc. v. Elledge , 515 S.W.2d 266, 267 (Tex. 1974).
cited Cited as authority (rule) Derr Construction Co. v. City of Houston
Tex. App. · 1992 · confidence medium
Allright Inc. v. Elledge, 515 S.W.2d 266, 267 (Tex.1974).
discussed Cited as authority (rule) Whitson v. Goodbodys, Inc. (2×) also: Cited "see"
Tex. App. · 1989 · confidence medium
Allright, Inc. v. Elledge, 515 S.W.2d 266, 267 (Tex.1974); Crowell v. Housing Auth. of Dallas, 495 S.W.2d 887, 889 (Tex.1973); Mostek Corp. v. Chemetron Corp., 642 S.W.2d 20, 26 (Tex.App.—Dallas 1982, writ dism’d by agr.).
discussed Cited as authority (rule) Southwestern Bell Telephone Co. v. Delanney (2×)
Tex. App. · 1988 · confidence medium
Allright, Inc. v. Elledge, 515 S.W.2d at 267, 268 .
cited Cited as authority (rule) Calarco v. Southwestern Bell Telephone Co.
Tex. App. · 1986 · confidence medium
Allright, Inc. v. Elledge, 515 S.W.2d 266, 267 (Tex.1974).
discussed Cited as authority (rule) The International Nickel Co., Inc. v. Trammel Crow Distribution Corp. (2×)
5th Cir. · 1986 · confidence medium
Arguing that under Texas law limitation of liability clauses are strictly construed against the bailee, see Allright, Inc. v. Elledge, 515 S.W.2d 266, 268 (Tex.1974), INCO contends that the limitation clause in this case fails to satisfy the Code requirement that liability be set per item or unit of weight.
cited Cited "see" Kimberly Ramirez v. 24 Hour Fitness USA, Inc., et
5th Cir. · 2014 · signal: see · confidence high
See Allright, Inc. v. Elledge, 515 S.W.2d 266, 267 (Tex. 1974) (Reavley, J.).
cited Cited "see" Kimberly Ramirez v. 24 Hour Fitness USA, Inc., et
5th Cir. · 2013 · signal: see · confidence high
See Allright, Inc. v. Elledge, 515 S.W.2d 266, 267 (Tex.1974) (Reavley, J.).
discussed Cited "see" D'Lux Movers & Storage v. Daniel Fulton and Betsy Fulton
Tex. App. · 2007 · signal: see · confidence high
See McGalliard v. Kuhlmann , 722 S.W.2d 694, 697 (Tex. 1986). 8: See Heritage Resources, Inc. v. NationsBank , 939 S.W.2d 118, 121 (Tex. 1996) (stating that we must give contractual terms their plain, ordinary, and generally accepted meaning unless the instrument shows that the parties used them in a technical or different sense). 9: O’Farrill Avila v. Gonzalez, 974 S.W.2d 237, 247 (Tex. App.—San Antonio 1998, pet. denied). 10: 809 S.W.2d 493 (Tex. 1991). 11: Id. at 494; s ee Formosa Plastics Corp. v. Presido Engrs. & Contractors, Inc. , 960 S.W.2d 41, 46-47 (Tex. 1998) (discussing how fra…
discussed Cited "see" Jacqueline C. Head, Individually and as Successor Trustee Under the FTW Living Trust v. U.S. Inspect DFW, Inc. F/K/A Affordable Inspections, Inc. and John Fox
Tex. App. · 2005 · signal: see · confidence high
See Allright, Inc. v. Elledge, 515 S.W.2d 266, 267 (Tex. 1974) (declaring that in determining whether a contractual agreement limiting liability is against public policy, the court looks to the relationship between the parties); Arthur’s Garage, Inc. v. Racal-Chubb Sec.
discussed Cited "see" Head v. U.S. Inspect DFW, Inc.
Tex. App. · 2005 · signal: see · confidence high
See Allright, Inc. v. Elledge, 515 S.W.2d 266, 267 (Tex.1974) (declaring that in determining whether a contractual agreement limiting liability is against public policy, the court looks to the relationship between the parties); Arthur’s Garage, Inc. v. Racal-Chubb Sec.
discussed Cited "see" Jacqueline C. Head, Individually and as Successor Trustee Under the FTW Living Trust v. U.S. Inspect DFW, Inc. F/K/A Affordable Inspections, Inc. and John Fox
Tex. App. · 2005 · signal: see · confidence high
See Allright, Inc. v. Elledge, 515 S.W.2d 266, 267 (Tex. 1974) (declaring that in determining whether a contractual agreement limiting liability is against public policy, the court looks to the relationship between the parties); Arthur’s Garage, Inc. v. Racal-Chubb Sec.
cited Cited "see" IP Petroleum Co., Inc. v. Wevanco Energy, L.L.C., David L. Neal, Individually and as Adminstrator of the Estate of Frances W. Neal Mark Schoomaker Jane Schoomaker Bonnie Vaughn And Martin Phillips
Tex. App. · 2003 · signal: see · confidence high
See Allright, Inc. v. Elledge , 515 S.W.2d 266, 267 (Tex. 1974).
cited Cited "see" IP Petroleum Co. v. Wevanco Energy, L.L.C.
Tex. App. · 2003 · signal: see · confidence high
See Allright, Inc. v. Elledge, 515 S.W.2d 266, 267 (Tex.1974).
cited Cited "see" IP Petroleum Co., Inc. v. Wevanco Energy, L.L.C., David L. Neal, Individually and as Adminstrator of the Estate of Frances W. Neal Mark Schoomaker Jane Schoomaker Bonnie Vaughn And Martin Phillips
Tex. App. · 2003 · signal: see · confidence high
See Allright, Inc. v. Elledge , 515 S.W.2d 266, 267 (Tex. 1974).
cited Cited "see" Hernandez v. Big 4, Inc.
S.D. Tex. · 2003 · signal: see · confidence high
See Riley v. Champion Int’l Corp., 973 F.Supp. 634, 649 (E.D.Tex.1997) (citing Allright, Inc. v. Elledge, 515 S.W.2d 266, 267 (Tex.1974)).
discussed Cited "see" Russell v. American Real Estate Corp.
Tex. App. · 2002 · signal: see · confidence high
See Allright, Inc. v. Elledge, 515 S.W.2d 266, 268 (Tex.1974) (the bailee’s standard of care is the care a reasonable and prudent person would use in protecting bailor’s property); see also Jack Boles Servs., Inc. v. Stavely, 906 S.W.2d 185, 188 (Tex.App.-Austin 1995, writ denied); cf. Tex. Farm Bureau Ins.
discussed Cited "see" George Russell and Tara Russell v. American Real Estate Corporation
Tex. App. · 2002 · signal: see · confidence high
See Allright, Inc. v. Elledge , 515 S.W.2d 266, 268 (Tex. 1974) (the bailee's standard of care is the care a reasonable and prudent person would use in protecting bailor's property); see also Jack Boles Servs., Inc. v. Stavely, 906 S.W.2d 185, 188 (Tex. App.-Austin 1995, writ denied); cf. Tex. Farm Bureau Ins.
cited Cited "see" American Indemnity Lloyds v. Travelers Property & Casualty Co.
S.D. Tex. · 2002 · signal: see · confidence high
See Riley v. Champion Int’l Corp., 973 F.Supp. 634, 649 (E.D.Tex.1997) (citing Allright, Inc. v. Elledge, 515 S.W.2d 266, 267 (Tex.1974)).
discussed Cited "see" Abraxas Petroleum Corp. v. Hornburg
Tex. App. · 2000 · signal: see · confidence high
See Allright, Inc. v. Elledge, 515 S.W.2d 266, 267 (Tex.1974); Crowell v. Housing Auth. of the City of Dallas, 495 S.W.2d 887, 889 (Tex.1973); Wilson v. Ferguson, 747 S.W.2d 499, 503 (Tex.App.—Tyler 1988, writ denied).
cited Cited "see" Riley v. Champion International Corp.
E.D. Tex. · 1997 · signal: see · confidence high
See Allright, Inc. v. Elledge, 515 S.W.2d 266, 267 (Tex.1974).
cited Cited "see" Mostek Corp. v. Chemetron Corp.
Tex. App. · 1982 · signal: see · confidence high
See Allright, Inc. v. Elledge, 515 S.W.2d 266, 267 (Tex.1974).
cited Cited "see" Martens v. General Motors Acceptance Corp.
Tex. App. · 1979 · signal: see · confidence high
See Allbright Inc. v. Elledge, 515 S.W.2d 266, 268 (Tex.1974); K & S Oil Well Service, Inc. v. Cabot Corp. Inc., 491 S.W.2d 733, 739 (Tex.Civ.App.—Corpus Christi 1973, writ ref’d n. r. e.).
discussed Cited "see, e.g." G-W-L, Inc. v. Robichaux (2×)
Tex. · 1982 · signal: see also · confidence low
See also Allright, Inc. v. Elledge, 515 S.W.2d 266 (Tex.1974) (limitation of liability in bailee's written parking contract need not be called to consumer/bailor's attention); W.R.
Retrieving the full opinion text from the archive…
ALLRIGHT, INC., Appellant,
v.
Roy Lee ELLEDGE, Jr., Appellee
B-4734.
Texas Supreme Court.
Jul 24, 1974.
515 S.W.2d 266
1974 Tex. LEXIS 303
Tipton & Bishop, George M. Bishop and W. Timothy Lewis, Houston, for appellant., Chilton Bryan, Lowell T. Cage, Houston, for appellee.
Reavley.
Cited by 61 opinions  |  Published

ON CERTIFIED QUESTION

REAVLEY, Justice.

The following question has been certified to the Supreme Court pursuant to Rules 461 and 465, Texas Rules of Civil Procedure:

Is a written agreement, entered into by a parking lot owner and an individual parking in a parking facility on a month-to-month basis, which agreement limits the parking lot owner’s liability to a maximum of $100.00 for loss to the bailed automobile due to theft occasioned by the ordinary negligence of the parking lot owner, void as against public policy?

Parties may agree to limit the liability of one for future negligence unless the agreement violates the constitution or statutes or public policy. Anno: Limiting Liability for Own Negligence, 175 A.L.R. 8 (1948). There is no impediment in the Texas Constitution or statutes preventing bailees generally from limiting their liability. The Legislature has enabled ware-housemen and common carriers to limit liability to a stated value of the property. V.T.C.A., Bus. & Comm.Co., § 7.204(b) and 7.309(b); but see Art. 883, Vernon’s Ann. Civ.St.

In determining whether a contractual agreement limiting liability is against public policy we look to the relationship between the parties. If because of this relationship there exists a disparity of bargaining power, the agreement will not be enforced. Crowell v. Dallas Housing Authority, 495 S.W.2d 887 (Tex.1973). A disparity of bargaining power exists when one party has no real choice in accepting an agreement limiting the liability of the other party. In Crowell a public body organized for the declared public purpose of providing safe and sanitary dwelling accommodations to persons of low income sought to limit its liability for damages resulting from theft, conditions on the prem-[*268] íses, or from any other cause. Persons of low income had no real choice but to accept this limitation in order to secure safe and sanitary dwelling accommodations. This presented a classic example of disparity of bargaining power and the agreement was held to be contrary to public policy.

A parking lot owner who is a bailee for hire owes the duty of ordinary care to protect the bailor’s automobile from theft. McAshan v. Cavitt, 149 Tex. 147, 229 S.W.2d 1016 (1950); Vollmer v. Stoneleigh-Maple Terrace, Inc., 226 S.W.2d 926 (Tex.Civ.App.1950, writ ref’d). The prior Texas cases dealing with the limitation of liability by parking lots have presented attempts to impose the limitation by posting notice on the wall or by print on the claim check. It has been decided that limitations of liability must be called to the attention of the bailor before they may become part of the bailment contract. McAshan v. Cavitt, supra; Ford v. McWilliams, 278 S.W.2d 338 (Tex.Civ.App.1955, no writ). Munger Automobile Co. v. American Lloyds of Dallas, 267 S.W. 304 (Tex.Civ.App.1924, no writ). Furthermore, these provisions are strictly construed against the bailee. Langford v. Nevin, 117 Tex. 130, 298 S.W. 536 (1927); McAshan v. Cavitt, supra; Timmins v. Schroeder, 26 S.W.2d 664 (Tex.Civ.App.1930, no writ).

This Court in the Crowell opinion referred to some support for the nullification of attempts to limit liability by professional bailees such as garagemen and owners of parking lots and parcel checkrooms. The basis given by the courts and writers for reaching this result is that the indispensable need for these services deprives the customer of any real bargaining power. Prosser, The Law of Torts, 4th ed. 1971, § 68; 14 Blashfield Auto Law, § 478.10 (3rd ed. 1969) ; Anno: Liability for Loss of or Damage to Automobile Left in Parking Lot or Garage, 7 A.L.R.3d 927, 938 (1966). The Court of Civil Appeals has held that the “customer of a public parking garage is at such a disadvantage m bargaining power that he would be practically compelled to accept limited liability.” 508 S.W.2d 864, 869. That is not necessarily true. Nothing in the certified question and no fact cited in the opinion of the Court of Civil Appeals would give any hint of the absence of bargaining power unless it is the very occupation of the garageman or parking lot owner. We do not know the occupation to command so dominant a position.

The certified question specifies that the limitation of liability is in “a written agreement entered into” by the owner of the parking lot and the owner of the automobile. If the written agreement is signed by the bailor, and if there is no circumstance that would deprive him of a freedom of choice — which are the facts of the case before the Court of Civil Appeals — we see no satisfactory cause for avoiding the terms of the contract. With that understanding of the inquiry, we answer the question: No.