Triplex Communications, Inc. v. Riley

The Court made clear in Triplex Communications, Inc. v. Riley, 900 S.W.2d 716 (Tex. 1995), that even when two separate entities have a common pecuniary interest in a jointly sponsored event, there cannot be a joint venture if one party has a superior right of control. In that case, the Court stressed no less than three times that the right to control was not equal. See Riley, 900 S.W.2d at 718-19. The Court held in Triplex that the owner of a bar had a greater right of control over the serving of alcohol than the radio station that highly publicized and co-sponsored "Ladies Night" at the bar. Id. In Triplex Communications, Inc. v. Riley, one issue, among others, was whether a radio station could be held liable under theories of joint enterprise for personal injuries resulting from a nightclub's violations of the Texas Dram Shop Act. The plaintiff's evidence showed that the nightclub ran a promotion pricing drinks on the night of the injuries to correspond to the radio station's FM frequency. It was the nightclub, however, that was licensed to sell the alcohol, controlled how much liquor was served and to whom it was served, decided who to admit and eject from the club and was in the best position to monitor the amount of liquor that the patrons consumed. See Triplex, 900 S.W.2d at 719. Further, there was no evidence that the radio station had any contractual right to control or exercised any control over who was served, admitted or rejected. See Triplex, 900 S.W.2d at 719. The Court held that this amounted to no evidence of an equal right to direct and control the enterprise sufficient to justify the imposition of joint enterprise liability. See Triplex, 900 S.W.2d at 719.