Colwell v. Union Central Life Insurance

232 N.W. 10, 59 N.D. 768
CourtNorth Dakota Supreme Court
DecidedAugust 4, 1930
StatusPublished

This text of 232 N.W. 10 (Colwell v. Union Central Life Insurance) is published on Counsel Stack Legal Research, covering North Dakota Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Colwell v. Union Central Life Insurance, 232 N.W. 10, 59 N.D. 768 (N.D. 1930).

Opinion

ChRxstxaNsoN, J.

The plaintiff Colwell was formerly a manager or general agent in North Dakota for the defendant Union Central Life Insurance Company; and he brought this action for the purpose of obtaining an accounting from the defendant insurance company for commissions on renewal premiums collected by the company on business written while plaintiff was such manager or general agent. At the time the action was instituted the defendant Security National Bank of Fargo was the holder of an assignment given by the plaintiff of moneys coming to him for commissions under his contract with the defendant insurance company, — such assignment having been given as collateral security for the payment of an indebtedness of plaintiff to said bank. It appears that there was some dispute between the plaintiff and the defendant bank as to what renewals were covered by the assignment and hence the bank was joined as a party’defendant. Aft: er the commencement of the action and before the trial thereof the [772]*772claim of the bank was assigned to one Grady who became tbe owner and holder of all the bank’s rights under the assignment. Grady intervened in the action, and during the first day of the trial thereof and before the matters in issue herein between appellant and respondent had been tried the plaintiff and said Grady entered into a written stipulation settling the matters in dispute between them as regards the assignment. The stipulation provides that said Grady has a first lien upon all renewal commissions coming to the plaintiff from the defendant insurance company, and that said Grady holds the same as collateral security for the payment of certain specified indebtedness owing to him by the plaintiff.

The facts necessary to an understanding of the issues involved on this appeal are substantially as follows: On May 23, 1913 the plaintiff and the defendant insurance company entered into a written contract by the terms of which the plaintiff was appointed manager of the defendant insurance company “to procure applications for life insurance, to deliver policies, to collect premiums when furnished with the policies, or receipts; and to perform such other duties as may be required in connection therewith.” The contract contained a provision to the effect that the parties had executed it in duplicate-“in lieu of all former contracts, if any, for the term of ten years.” The territory covered by the contract was approximately the eastern half of the state of North Dakota. According to the terms of the contract the plaintiff was to be paid a certain percentage of the first year’s premiums and certain commissions on specified renewal premiums (according to the schedule set forth in the contract) on policies written under the contract. This contract was fully completed; and it is undisputed that if there had been no further contractual relations between the parties the plaintiff would be entitled to receive from the defendant insurance company commissions upon the renewal premiums according to the terms specified in the contract.

On May 23, 1923 the parties entered into another contract. The same printed form was used for the second contract as had been used for the first but certain changes were made in typewriting. -Both the first and the second contract contained this provision: “The parties to this contract have executed it in duplicate, in lieu of all former eon-[773]*773tracts, if any, for tbe term of ten years.” The second contract contained the following provisions:

7. “Renewal Rights — That the party of the first part will pay to the party of the second part, if living otherwise to his estate, subject to liens, if any, the balance of nine renewal commissions from the date of each particular policy, at the rate provided in Article 4, both upon the business written under this and former contract; less, in the event of termination of this contract, a collection fee of two (2%) percent, excepting that on premiums on which sub-agents receive renewals, the collection fee shall be but one (1%) percent.

16. “Extra Second Year Renewal — That the party of the first part, during the continuance of this contract, will pay to the party of the second part, an extra renewal commission of five (5%) percent,- as the second year premiums are collected and reported in cash, on poliéies issued on or after May 23, 1922.-

17. "Renewals — Eleventh to Fifteenth Year — That the party of the first part, during the continuance of this contract, will pay to the party of the second part, a renewal commission of five (5%) percent of the cash reported on the eleventh to fifteenth years’ premiums inclusive, on the business written under former contract prior to May 23rd, 1922.”

Both contracts contained a provision authorizing the insurance company to terminate the same upon certain specified grounds. It was claimed by the insurance company that the plaintiff had violated his contract in such manner as to authorize a termination thereof, and on or about June 4, 1924, the plaintiff, at the request of the defendant insurance company, resigned as manager, and on that day the following contract was entered into between the parties:

“It is hereby agreed by the Union Central Life Insurance Company with Arthur F. Colwell, in view of his resignation presented and hereby accepted this date as Manager of the Union Central Life Insurance Company, under contract dated May 23, 1923, and all amendments thereto, if any, that the following commissions will be paid to said Arthur F. Colwell, subject to sub-agents’ interests, any indebtedness due the Company now or hereafter discovered, and subject to any legal assignments:
[774]*774“Full first year commissions according to contract if any are unpaid at this date, or on any outstanding first year notes when paid.
“During a nine year period from date, the balance of nine renewal commissions, or the balance of four renewal commissions on Five Year Term policies, as follows:— ,
“Five percent (5%) on Endowment policies paid by less than twenty annual premiums and on Personal Life Income Deferred Annuity policies, and seven percent (1%) on Business Protection policies three percent reserve, and seven and one half percent (YJ%) on all other policies; less a collection fee of two percent (2%). Also a renewal commission of five percent (5%), less a collection fee of two percent (2%), of the cash premiums paid on the eleventh to fifteenth years’ premiums inclusive on the business written prior to May 23, 1922, under the former contract prior to the contract of May 23, 1923. Also an extra renewal commission of five percent (5%) as the second year premiums are paid in cash on policies issued on and after May 23, 1922.
“Furthermore any and all future interest herein described shall cease if said Arthur F. Colwell in any manner interferes with the Company’s business.
“In the event of the death of said Arthur F. Colwell before all such renewals have been paid, the balance remaining unpaid shall be paid to his estate.
“It is agreed that Arthur F. Colwell shall furnish a statement of the amounts owing by him to his sub-agents on this date and approved by each agent. If said statements are not furnished and if any amounts due his sub-agents are not paid by said Arthur F.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Potrero Neuvo Land Co. v. All Persons Claiming
101 P. 12 (California Supreme Court, 1909)
Niles v. Gonzalez
92 P. 74 (California Supreme Court, 1907)
Mannix v. Tryon
91 P. 983 (California Supreme Court, 1907)
Lind v. Lambert
236 P. 121 (Idaho Supreme Court, 1925)
In Re McGovern's Estate
250 P. 812 (Montana Supreme Court, 1926)
Nelson Bennett Co. v. Twin Falls Land & Water Co.
92 P. 980 (Idaho Supreme Court, 1907)
Wright v. Spencer
221 P. 846 (Idaho Supreme Court, 1923)
Senter v. De Bernal
38 Cal. 637 (California Supreme Court, 1869)
Williams v. Santa Clara Mining Ass'n of Balt.
5 P. 85 (California Supreme Court, 1884)
Thompson v. Ellsworth
1 Barb. Ch. 624 (New York Court of Chancery, 1846)
Wyoming Hereford Ranch v. Hammond Packing Co.
222 P. 1027 (Wyoming Supreme Court, 1924)
T. C. Power & Brother v. Murphy
68 P. 411 (Montana Supreme Court, 1902)
Powell v. International Harvester Co. of America
170 N.W. 559 (North Dakota Supreme Court, 1918)
Alliance Trust Co. v. O'Brien
50 P. 801 (Oregon Supreme Court, 1897)
Templeton v. Morrison
131 P. 319 (Oregon Supreme Court, 1913)
State v. Olcott
135 P. 95 (Oregon Supreme Court, 1913)
First Nat. Bank v. Halliday
193 P. 1029 (Oregon Supreme Court, 1920)

Cite This Page — Counsel Stack

Bluebook (online)
232 N.W. 10, 59 N.D. 768, Counsel Stack Legal Research, https://law.counselstack.com/opinion/colwell-v-union-central-life-insurance-nd-1930.