Beiersdoerfer v. HILB, ROGAL AND HAMILTON

953 So. 2d 1196, 2006 WL 2709688
CourtSupreme Court of Alabama
DecidedSeptember 22, 2006
Docket1012243 and 1012304
StatusPublished
Cited by18 cases

This text of 953 So. 2d 1196 (Beiersdoerfer v. HILB, ROGAL AND HAMILTON) is published on Counsel Stack Legal Research, covering Supreme Court of Alabama primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Beiersdoerfer v. HILB, ROGAL AND HAMILTON, 953 So. 2d 1196, 2006 WL 2709688 (Ala. 2006).

Opinion

953 So.2d 1196 (2006)

Werner BEIERSDOERFER
v.
HILB, ROGAL and HAMILTON COMPANY et al.
Hilb, Rogal and Hamilton Company et al.
v.
Werner Beiersdoerfer.

1012243 and 1012304.

Supreme Court of Alabama.

September 22, 2006.

*1198 William K. Thomas of Cabaniss, Johnston, Gardner, Dumas & O'Neal, Birmingham; and James R. Morgan, Birmingham, for appellant/cross-appellee Werner Beiersdoerfer.

Michael D. Freeman, Allen M. Estes, Vincent J. Bodin, and J. Eric Getty of Balch & Bingham, LLP, Birmingham, for appellees/cross-appellants Hilb, Rogal and Hamilton Company et al.

*1199 On Applications for Rehearing

PER CURIAM.

This Court's opinion of January 7, 2005, is withdrawn, and the following is substituted therefor.

The defendant/counter-plaintiff Werner Beiersdoerfer appeals the grant of the motion for new trial filed by the "HRH" plaintiffs/counter-defendants Hilb, Rogal and Hamilton Company ("HRH"); Hilb, Rogal and Hamilton of Alabama, Inc. ("HRH Alabama"); and Beiersdoerfer-Meadows, Inc. (collectively "the HRH plaintiffs"). The HRH plaintiffs cross-appeal the denial of their motions for a summary judgment and a judgment as a matter of law ("JML"). In case no. 1012304, we decline to review the denial of the motion for a summary judgment, and we dismiss the appeal in part and affirm the denial of the motion for a JML. In case no. 1012243, we reverse the order granting the motion for a new trial, and we remand the case for further proceedings consistent with this opinion.

Substantive Facts

In reviewing rulings on motions for a summary judgment or a JML, we consider all of the relevant undisputed evidence, accept the tendencies of the disputed evidence most favorable to the nonmoving party, and resolve all reasonable factual doubts in favor of the nonmoving party. Alexander, Corder, Plunk, Baker & Shelly, P.C. v. Jackson, 811 So.2d 506, 513 (Ala. 2001), and Alfa Life Ins. Corp. v. Jackson, 906 So.2d 143, 146 (Ala.2005). Considered in that manner, the evidence established the following facts.

On January 1, 1998, Beiersdoerfer, the sole shareholder of Beiersdoerfer-Meadows, Inc. ("BMI"), an insurance agency, sold all of the stock in BMI to HRH for $700,000 and executed a written stock-purchase agreement. In addition, Beiersdoerfer agreed to work for HRH for two years and executed a written employment agreement. In both the stock-purchase agreement and the employment agreement, Beiersdoerfer agreed that he would not compete with HRH for a specified period of time. As an employee of HRH, Beiersdoerfer continued to manage the accounts of BMI and to supervise subordinates.

In June 2000, Beiersdoerfer told Richard Simmons III, regional director of HRH, that Beiersdoerfer wanted to terminate his employment with HRH. Beiersdoerfer offered to repurchase BMI from HRH. Simmons told Beiersdoerfer that Simmons would have to discuss Beiersdoerfer's offer to purchase BMI with Mel Vaughn, the chief operating officer of HRH, because Simmons did not have authority to accept or to reject such an offer on behalf of HRH. Vaughn rejected Beiersdoerfer's offer.

After Vaughn rejected Beiersdoerfer's offer to repurchase BMI, Beiersdoerfer and Simmons began discussing the possibility of Beiersdoerfer's continuing to manage the accounts of BMI for HRH as an independent broker instead of as an employee. Beiersdoerfer asked Simmons whether he had the authority to agree to such an arrangement without seeking approval from the home office of HRH in Richmond, Virginia. Simmons responded "that he had the authority and the decision could be made locally and no Richmond." (At trial, however, Vaughn testified that Simmons did not have such authority.)

Thereafter, Beiersdoerfer and Simmons met in mid-November 2000 ("the mid-November meeting"). Simmons asked Beiersdoerfer *1200 to go over his proposal to manage the accounts of BMI as an independent broker. Beiersdoerfer stated that he proposed to resign as an employee of HRH, to manage the accounts of BMI as an independent broker, and to split the commissions generated by those accounts with HRH. Simmons suggested that HRH should receive 60% of the commissions and Beiersdoerfer should receive 40%. Beiersdoerfer agreed and stated that he would pay all of his expenses out of his share of the commissions. Beiersdoerfer further stated that the arrangement would continue until HRH received an amount equal to the $700,000 it had paid Beiersdoerfer for the stock in BMI less any profits already received by HRH from the operation of BMI ("the monetary goal"). Finally, Beiersdoerfer stated that, under his proposal, any new business referred by HRH to BMI would remain with HRH when the arrangement ended and any new business generated by Beiersdoerfer or referred by outside brokers would go with him when the arrangement ended. At the end of this discussion, Simmons said: "I understand and I agree." Simmons then told Beiersdoerfer that he was leaving at the end of the year to take another position, and he asked Beiersdoerfer to explain the arrangement to David Hobbs, the president of HRH Alabama. After the mid-November meeting, Beiersdoerfer made informal arrangements to sublease office space in another building where he planned to manage the BMI accounts as an independent broker; he arranged for a moving company; and he moved his office.

On November 21, 2000, Beiersdoerfer, Simmons, and Hobbs met to discuss Beiersdoerfer's managing the BMI accounts for HRH as an independent broker ("the November 21 meeting"). Beiersdoerfer recited the terms he and Simmons had discussed at the mid-November meeting. Hobbs complained that two BMI agents, Kevin Tangney and Heidi Parker, who is Beiersdoerfer's daughter, were planning to leave BMI without having signed covenants not to compete with HRH. Hobbs said that he could cause trouble for Parker and Tangney even though they had not signed a covenant not to compete. Beiersdoerfer said he would continue to manage the BMI accounts until HRH received $75,000 more than the monetary goal if Hobbs would refrain from causing trouble for Parker and Tangney. Hobbs stated: "I agree." Hobbs then told Beiersdoerfer that, because they were going to implement the independent-broker arrangement, Beiersdoerfer should take BMI's files to his office. Although Hobbs said that he wanted Simmons to reduce the terms of the agreement between Beiersdoerfer and HRH to writing, neither he nor Simmons indicated that the assent of HRH to the agreement was contingent on its being reduced to writing. Beiersdoerfer testified at trial that no details of the agreement remained unresolved at the end of the November 21 meeting. Simmons admitted at trial that neither he nor Hobbs told Beiersdoerfer at the November 21 meeting that any details of their agreement remained unresolved.

The next day, Beiersdoerfer moved BMI's files from the offices of HRH to his new office. While he was at HRH's offices, he saw Simmons, who stated, "I was glad that we were able to reach an agreement." On December 1, Beiersdoerfer executed a sublease on his new office.

After the mid-November meeting and the November 21 meeting, Simmons instructed the comptroller of HRH to pay Beiersdoerfer 40% of the revenue of BMI *1201 as a commission after December 31. The comptroller then prepared a budget for the next year showing Beiersdoerfer as receiving 40% of the revenue of BMI as a commission.

On November 27 and 28, 2000, Simmons and Hobbs met with Vaughn at the home office of HRH in Richmond ("the November 27 and 28 meetings").

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953 So. 2d 1196, 2006 WL 2709688, Counsel Stack Legal Research, https://law.counselstack.com/opinion/beiersdoerfer-v-hilb-rogal-and-hamilton-ala-2006.