American Nat. Ins. Co. v. Van Dusen

185 S.W. 634, 1913 Tex. App. LEXIS 1457
CourtCourt of Appeals of Texas
DecidedDecember 17, 1913
DocketNo. 6487.
StatusPublished
Cited by3 cases

This text of 185 S.W. 634 (American Nat. Ins. Co. v. Van Dusen) is published on Counsel Stack Legal Research, covering Court of Appeals of Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
American Nat. Ins. Co. v. Van Dusen, 185 S.W. 634, 1913 Tex. App. LEXIS 1457 (Tex. Ct. App. 1913).

Opinions

PLEASANTS, C. J.

This suit was brought by appellee against appellant to recover the sum of $12,000 damages for the alleged breach by appellant of a contract by which it had employed appellee to render personal services as superintendent of agents in the industrial branch of appellant’s insurance business in the Houston district. The breach alleged was the wrongful discharge of appel-lee by appellant before the expiration of the term of employment, which it is alleged was for five years from April 20, 1908.

The defendant answered by general denial and specially denied some of the allegations of the petition. It further averred that by the terms of its contract with plaintiff it had the right to discharge him at any time and without cause. It also made charges against plaintiff, which if found to be true were sufficient cause for his discharge.

The cause was submitted to a jury in the ■court below upon special issues, upon all of which the jury found in favor of plaintiff. Upon this verdict judgment was rendered in favor of plaintiff for the sum of $10,031.75.

The contract for breach of which the suit is brought is lengthy and need not be set out in full. The following summary of its provisions, which quotes the provisions the construction of which is material to a proper disposition of this appeal, is copied from appellant’s brief:

“It recites that it is made April 20, 1908, and that Van Dusen, in consideration of being appointed as superintendent of agent s in the Houston, Texas, district, at the salary and witli the emoluments specified, agrees as follows: There follow stipulations on his part numbered consecutively from ‘First’ to ‘Seventeenth,’ of which IS are printed and the other typewritten. Following these are 9 typewritten stipulations on the part of the company. The ‘Eleventh’ of his is as follows:
“ ‘Eleventh — He acknowledges the right of the general manager or any other executive officer of the company to revoke this appointment at pleasure, and that he holds the superintendency (subject, however, to said right of revocation) only upon condition that he conforms in all respects to the rules, instructions and regulations of the company; and that any violation of this agreement, or of the rules, instructions and regulations of the company shall subject him to immediate and unconditional dismissal; it being understood that for the purpose of this agreement the rules, instructions and regulations above mentioned include such as may bo prescribed and communicated by the general manager or any other executive officer to him from time to time.’
“In the ftwelfth’ he agrees not to resign without having given seven days’ notice.
“The ‘thirteenth’ provides that, in case of his resigning or being dismissed, he agrees, upon request, to introduce to his successor the agents in his district.
“The ‘fourteenth’ stipulation (typewritten) is as follows:
“ ‘Fourteenth — To make the following average increase on the company debit in Beaumont and Houston during each six months of the first four years from the date of this contract, first six months $100.00, second $200.00, and $75.00 during each of the remaining six month periods of the four years above mentioned, with an average of 92 per cent, collections, beginning with the twenty-first week from the date of first issue.’
■ “By ‘company debit’ is meant weekly premiums charged for industrial insurance.
“Following his stipulations are those of the company numbered from first to ninth, inclusive, none of which affect the question now being presented. Then comes this concluding clause:
“ ‘This contract to remain in full force and effect for five years from date hereof, provided superintendent makes the stipulated increase and per cent, of collections, and it is mutually-agreed that if this contract and the employment thereunder shall terminate for any cause, by resignation, dismissal, death or otherwise, during any year, said contingent salary which said superintendent shall have then received from the company shall be in full settlement of all claims and demands upon the company in favor of said superintendent under this agreement and for his services up to that time in any capacity, and all further salary which a successful continuance of the superintendency might have secured to him shall be waived and forfeited.’ ”

Henry Sheffield, .who was manager of appellant company, and in such capacity made the contract for the company with the plaintiff, but who was subsequently discharged by the company and was not in its service at the time he testified in the trial of this case, testified, in substance, that in April, 1908, the company’s industrial insurance business at Houston was very unsatisfactory, and knowing that plaintiff was an experienced superintendent of such business, that he had represented other companies at Houston who were engaged in that line of insurance but had prior to the time above mentioned withdrawn from the state, and was acquainted with the conditions at Houston and knew best who to employ as agents there, he decided to secure plaintiff’s services for appellant. With this end in view he went to Dallas, and through a mutual friend arranged for a meeting with plaintiff, who then lived at Sherman, Tex. The first meeting was at Dallas, and shortly thereafter witness went to Sherman and made a contract with plaintiff. This contract was in substance the same as the typewritten portions of the contract before mentioned. This typewritten portion of the contract was prepared by the witness and was afterwards attached to the printed form, which was the usual form of contracts made by the company with its superintendents. In regard to the *636 intention!- of the parties in the execution of the contract in respect to its duration, he says:

“The printed part, being the form of superintendent’s agreement used by the company at that time, was used to give the contract the usual form, but I considered, and it was so understood, that the contract that we entered into is that reflected by the typewritten portion of the document which has been exhibited to me. The contract was to be for five years, subject to conditional clause fourteenth of the typewritten part of the contract. Van Dusen did insist upon having a definite time for him to represent the company under the contract, and I demur-red, and would not give him the five-year term until I had referred the matter to the company. * ⅜ ⅜ Mr, Van Dusen and I did not intend making a contract whereby the American National Insurance Company could terminate the contract at its own pleasure or will, as is provided in the eleventh paragraph (printed), reading: ‘He acknowledges the right of the general manager or any other executive officer of the company to revoke this appointment at pleasure,’ but we did understand and intend that the contract should be determined under clause fourteenth of the typewritten form of the contract.

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Cite This Page — Counsel Stack

Bluebook (online)
185 S.W. 634, 1913 Tex. App. LEXIS 1457, Counsel Stack Legal Research, https://law.counselstack.com/opinion/american-nat-ins-co-v-van-dusen-texapp-1913.