Daniels v. Parker and Associates, Inc.

99 So. 3d 797, 2012 WL 4785130, 2012 Miss. App. LEXIS 620
CourtCourt of Appeals of Mississippi
DecidedOctober 9, 2012
DocketNo. 2011-CA-01164-COA
StatusPublished
Cited by24 cases

This text of 99 So. 3d 797 (Daniels v. Parker and Associates, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals of Mississippi primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Daniels v. Parker and Associates, Inc., 99 So. 3d 797, 2012 WL 4785130, 2012 Miss. App. LEXIS 620 (Mich. Ct. App. 2012).

Opinion

ISHEE, J„ for the Court:

¶ 1. In November 2008, Jimmy Daniels filed a complaint in the Lauderdale County Circuit Court against Parker and Associates Inc., The Liberty Group, and Dalvin Kendall Parker.1 In the complaint, Daniels alleged they owed him money held in an escrow account, which was earned during their employment relationship. Daniels further alleged Parker breached the implied duty of good faith and fair dealing by refusing to provide him with a release from their contracts so that he could seek other employment. Based on a March 2011 motion, the trial court granted summary judgment in favor of Parker. Aggrieved, Daniels now appeals. On appeal, Daniels argues there were genuine issues of material fact as to whether Parker violated the implied duty of good faith and fair dealing, rendering summary judgment improper. Finding no error, we affirm.

FACTS AND PROCEDURAL HISTORY

¶ 2. Parker and Associates is a field marketing organization that sells insurance products issued by various insurers. The Liberty Group is a subsidiary of Parker and Associates, and Dalvin is a shareholder of Parker and Associates. In November 2005, Daniels began selling insurance products for Parker. It is undisputed that Daniels was an independent contractor and not an employee of Parker.

¶ 3. When Daniels began selling insurance for Parker, he signed a broker agreement, a pre-contract agreement, an agreement to work leads, and an adjusted premium-per-lead cost chart. Upon selling an insurance policy, Daniels was paid [799]*799a set fee from Parker. After submitting the insurance application, his commission was deposited into Parker’s “Agent-Trax” system. This was essentially an advanced commission. If the application was later cancelled by the policy owner or rejected by the insurer, Parker “charged back” the advanced commission it previously paid to Daniels. In addition to any charge backs incurred, Daniels paid Parker for other expenses, such as postage and shipping.

¶ 4. Because of the charge backs, Parker established an escrow account in which a certain percentage of Daniels’s advanced commission was deposited. The escrow account was used to offset the cost of the charge backs. Initially, ten percent of Daniels’s advanced commission was placed in the escrow account, that number grew to twenty-five percent, and eventually to thirty-five percent. In December 2007, Daniels stopped selling insurance policies through Parker. Parker asserts that after the relationship with Daniels ended, Daniels still incurred charge backs which resulted in a negative balance in the escrow account.

¶ 5. In October 2008, as Daniels was seeking employment selling insurance products for Pennsylvania Life (Penn Life), he sought a release from his contracts with Parker. Penn Life required such a release before employing Daniels. Daniels alleged a release was required because the agreement between himself and Parker to work leads created an exclusive agreement. The agreement to work leads stated in pertinent part:

In consideration that I, [Daniels], may work the Parker and Associated Policy Holder List of the Ken Parker Agency, I agree to represent solely Parker and Associated when soliciting these leads. I will in no way induce a policy holder to leave Parker and Associates or purchase a product that would replace his or her existing Parker and Associates policy. I will return all policyholder lists and names with copies or duplications of any manner.

While Daniels asserted this language created an exclusive contract, Parker asserted the contract only restricted Daniels when he was working from Parker’s policyholder list. Furthermore, Parker asserted the release was simply a Penn Life requirement to ensure Daniels had met all of the financial obligations he had to Parker.

¶ 6. Ultimately, Parker refused to provide a release because the company asserted that Daniels owed over $24,000 in charge backs, and they would only provide a release if Daniels signed a promissory note for the amount owed. Daniels maintained that he did not owe the money. Rhonda Herring, a paralegal at Phelps Dunbar, a law firm hired by Daniels, contacted Parker and informed them that Parker’s records did not match Daniels’s records. One such disputed charge was a commission paid on Coventry policies. Daniels asserted he never wrote a policy for Coventry, and, thus, could not have incurred charge backs related to that account.

¶ 7. On November 19, 2008, Daniels filed a complaint against Parker. In the complaint, Daniels sought money held in the escrow account for the $825 per application he was paid.2 He also sought punitive damages for Parker’s “outrageous conduct” of not providing a release. He alleged Parker’s failure to provide a release was a breach of contract. Finally, Daniels sought a declaratory judgment “declaring and enjoining [Parker] from refusing to release [Daniels] from his agency contract [800]*800so that he can begin employment with Pennsylvania Life.”

¶8. On April 13, 2009, Parker filed a counterclaim. The counterclaim asserted that Daniels owed Parker $26,317.50 in charge backs. After applying the amount of $3,806.25 left in the escrow account, there was a remaining balance of $22,511.25 owed. Accordingly, Parker sought damages in the amount of $22,511.25.

¶ 9. On March 21, 2011, Parker filed a motion for summary judgment. The motion requested summary judgment on the first issue because there was no evidence Parker owed Daniels any unpaid sums for insurance applications. In fact, according to Parker, the evidence showed that Daniels owed Parker for charge backs. On the second issue, Parker noted that Daniels was an independent contractor, not an employee; there was no exclusive contract from which a release was required; the release was a Penn Life requirement, not a Parker requirement; and Parker could not truthfully state in a release that Daniels no longer had any financial obligation to the company.

¶ 10. On July 18, 2011, the trial judge granted Parker’s motion for summary judgment. The trial judge found that Daniels “failed to provide any evidence whatsoever in support of his claim that [Parker] owed him $30,000 in commission fees”; thus, Daniels failed to raise any genuine issues of material fact. The trial judge further found the release requirement was a Penn Life requirement and had no relation to any contracts between Parker and Daniels. Therefore, the trial judge held there was no contractual obligation between Daniels and Parker and there can be no breach of contract. Accordingly, the trial judge granted summary judgment in favor of Parker. Daniels appeals arguing the trial court erred by finding there were no genuine issues of material fact and granting summary judgment.

DISCUSSION

¶ 11. Summary judgment is appropriate “if the pleadings, depositions, answers to interrogatories and admissions on file, together with the affidavits, if any, show that there is no genuine issue as to any material fact and that the moving party is entitled to a judgment as a matter of law.” M.R.C.P. 56(c). We review a trial court’s grant of summary judgment de novo. Thomas v. Bradley, 987 So.2d 1020, 1024 (¶ 12) (Miss.Ct.App.2008) (citing Mantachie Natural Gas v. Mississippi Valley Gas Co., 594 So.2d 1170, 1172 (Miss.1992)). The party seeking summary judgment bears the burden of establishing that no genuine issue of material fact exists. Watson Quality Ford, Inc. v. Casanova, 999 So.2d 830, 833 (¶ 7) (Miss.2008) (citing

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Cite This Page — Counsel Stack

Bluebook (online)
99 So. 3d 797, 2012 WL 4785130, 2012 Miss. App. LEXIS 620, Counsel Stack Legal Research, https://law.counselstack.com/opinion/daniels-v-parker-and-associates-inc-missctapp-2012.