Cawiezell v. Franklin Life Ins

CourtCourt of Appeals for the Fourth Circuit
DecidedDecember 27, 2000
Docket99-2416
StatusUnpublished

This text of Cawiezell v. Franklin Life Ins (Cawiezell v. Franklin Life Ins) is published on Counsel Stack Legal Research, covering Court of Appeals for the Fourth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Cawiezell v. Franklin Life Ins, (4th Cir. 2000).

Opinion

UNPUBLISHED

UNITED STATES COURT OF APPEALS FOR THE FOURTH CIRCUIT

ROGER CAWIEZELL, d/b/a Cawiezell  Financial Services, Plaintiff-Appellant, v. THE FRANKLIN LIFE INSURANCE  No. 99-2416 COMPANY, an Illinois corporation; THE AMERICAN FRANKLIN LIFE INSURANCE COMPANY, an Illinois corporation, Defendants-Appellees.  Appeal from the United States District Court for the Eastern District of North Carolina, at Raleigh. W. Earl Britt, Senior District Judge. (CA-98-461-5-BR)

Argued: September 26, 2000

Decided: December 27, 2000

Before NIEMEYER and TRAXLER, Circuit Judges, and Frederick P. STAMP, Jr., Chief United States District Judge for the Northern District of West Virginia, sitting by designation.

Affirmed by unpublished per curiam opinion.

COUNSEL

ARGUED: Richard William Farrell, FARRELL & LA MANTIA, Raleigh, North Carolina, for Appellant. James L. Gale, SMITH, 2 CAWIEZELL v. FRANKLIN LIFE INSURANCE CO. HELMS, MULLISS & MOORE, L.L.P., Raleigh, North Carolina, for Appellees. ON BRIEF: Michael S. Yopp, FARRELL & LA MANTIA, Raleigh, North Carolina, for Appellant. Matthew W. Sawchak, Julia F. Youngman, SMITH, HELMS, MULLISS & MOORE, L.L.P., Raleigh, North Carolina, for Appellees.

Unpublished opinions are not binding precedent in this circuit. See Local Rule 36(c).

OPINION

PER CURIAM:

Roger Cawiezell d/b/a Cawiezell Financial Services ("Cawiezell") sued Franklin Life Insurance Company and The American Franklin Life Insurance Company (collectively "Franklin") alleging that he had been wrongfully terminated from his employment as a regional man- ager for Franklin. Cawiezell’s complaint alleges fraud, deceit, negli- gent and intentional misrepresentation, estoppel, waiver, ratification and laches, wrongful termination under the Illinois Franchise Disclo- sure Act, and violation of the North Carolina Unfair and Deceptive Trade Practice Act. Both Cawiezell and Franklin moved for summary judgment. The district court granted summary judgment in favor of Franklin holding: (1) Franklin did not violate the Illinois Franchise Disclosure Act by terminating Cawiezell’s contract without good cause because that statute did not apply; (2) the implied duty of good faith cannot override the "at will" termination clause in the regional manager contract; (3) Cawiezell’s claims in tort and equity fail because his wrongful termination allegations fail; (4) Cawiezell states no claim under the North Carolina Unfair and Deceptive Trade Prac- tices Act because all disputes between the parties under the regional manager contract are governed by Illinois law. We affirm.

I.

From 1975 to 1998, Roger Cawiezell served as regional manager for Franklin Life Insurance Company and The American Franklin CAWIEZELL v. FRANKLIN LIFE INSURANCE CO. 3 Life Insurance Company. Specifically, Cawiezell was regional man- ager of the "Pine State Region" which, by the end of his tenure at Franklin, covered all of North Carolina and several counties in South Carolina and Tennessee. As a regional manager, Cawiezell built, maintained, and administered a network of agents to sell Franklin life insurance policies and products throughout his region.

A series of written employment contracts governed the relationship between Cawiezell and Franklin. Cawiezell entered into a standard regional manager’s contract in 1975. In 1980, 1985, and 1995, Cawie- zell signed renewal regional manager contracts. The 1995 contract is representative of the employment relationship that existed between the parties during the 23 years Cawiezell was associated with Frank- lin.

The 1995 contract contained certain key provisions. First, Cawie- zell was to work for Franklin as an independent contractor, not as an employee. J.A. 359 (§ 1(A)). Second, Cawiezell’s authority as a Franklin agent was limited to "soliciting and procuring applications for insurance and related products by [Franklin]." Id. (§ 2(A)). Third, Cawiezell could not "make, alter, or discharge contracts on behalf of" Franklin. J.A. 360 (§ 2(D)). Fourth, Cawiezell was required to partici- pate in various training programs as specified by Franklin. J.A. 361 (§ 3(F)). Fifth, termination of Cawiezell’s employment was governed by the following clause:

This contract may be terminated by either party without cause, by sending the other at last known address by mail, 30 days notice in writing to that effect, or by delivery of such notice in person. It is expressly understood by the par- ties that this contract may be terminated at will by either party with or without cause.

(emphasis added). J.A. 363 (§ 8(A)). Sixth, Illinois law governed the application and interpretation of the contract. J.A. 365 (§ 10).

In April 1997, Cawiezell began promoting pre-paid legal insurance ("PPL"), a product not offered by Franklin. On June 4, 1997, Cawie- zell met with members of Franklin’s management to encourage them to endorse the promotion of PPL through Franklin’s national sales 4 CAWIEZELL v. FRANKLIN LIFE INSURANCE CO. network. Shortly thereafter, on June 24, 1997, Franklin wrote a letter to Cawiezell informing him that PPL "would not be the proper direc- tion for our sales associates."

The parties give the June 24 letter different meanings. Franklin contends that the letter (along with other communications with Cawiezell) indicated that Cawiezell was to discontinue promotion of PPL through Franklin’s sales network. Cawiezell, however, maintains that the letter did not expressly bar Cawiezell from selling PPL. Cawiezell interpreted his regional manager contract and his communi- cations with Franklin officials to mean that his involvement with PPL was permissible, albeit unadvisable. Cawiezell also alleges that vari- ous decisions made by Franklin’s management against the sale of PPL were not communicated to him.

On March 17, 1998, the chief executive officer of Franklin wrote a letter to Cawiezell criticizing his continued efforts to promote PPL through the Franklin sales network, and demanding that he come to Franklin’s headquarters in Springfield, Illinois for an "expedited meeting . . . to explain how you will totally withdraw from your affili- ation of pre-paid legal services in order for you to remain as a Regional Manager." The letter also repeated an earlier request that Cawiezell not attend an upcoming national meeting of regional man- agers. Id. On March 17, 1998, Cawiezell responded by letter to Frank- lin’s chief executive officer, explaining that he understood from the June 4, 1997 meeting that Franklin had no interest in promoting PPL, but that he had never been given any verbal or written directive from Franklin’s management indicating that he could not personally con- tinue to handle PPL.

On April 3, 1998, the expedited meeting took place. According to members of Franklin’s management, Cawiezell failed to present a sat- isfactory plan to terminate his promotion of PPL during the meeting and that he was fired at that meeting. On April 6, 1998, Franklin sent a letter to Cawiezell explaining that Franklin had terminated Cawie- zell’s regional manager contract.

Cawiezell then sued on grounds of wrongful termination. The dis- trict court granted summary judgment in favor of Franklin. On appeal, Cawiezell presented the following issues for review: (1) Whether the CAWIEZELL v. FRANKLIN LIFE INSURANCE CO.

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