Dunn v. Mutual Benefit Health & Accident Ass'n

282 N.W. 487, 135 Neb. 506, 1938 Neb. LEXIS 214
CourtNebraska Supreme Court
DecidedNovember 26, 1938
DocketNo. 30420
StatusPublished
Cited by6 cases

This text of 282 N.W. 487 (Dunn v. Mutual Benefit Health & Accident Ass'n) is published on Counsel Stack Legal Research, covering Nebraska Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Dunn v. Mutual Benefit Health & Accident Ass'n, 282 N.W. 487, 135 Neb. 506, 1938 Neb. LEXIS 214 (Neb. 1938).

Opinion

Carter, J.

This is an action by an agent to recover from his principal the amount alleged to be due under an express agreement for hire. The plaintiff’s petition consisted of four causes of action, the second of which was dismissed by plaintiff during the course of the trial. The trial court sustained plaintiff’s motion for a directed verdict as to the third cause of action and a judgment was entered thereon. On the first and fourth causes of action the court directed verdicts for the defendant and from these orders the plaintiff appeals.

The evidence shows that plaintiff entered into a written contract with the Mutual Benefit Health & Accident Association of Omaha, hereafter referred to as the defendant, by which he agreed to represent the defendant as its general agent in the Great Falls district in Montana. As a consideration, plaintiff was to receive certain stated commissions on first premiums on policies based upon applications solicited by him in his territory, also the overwrite on all premiums based upon policies sold by his sub-agents, a collection fee on all premiums collected through his office in Great Falls and an overwrite collection fee on all premiums collected at points where the defendant company had not appointed local treasurers. The duties of the plaintiff were set forth in the contract in the following words: “In consideration of this appointment the second party hereby accepts said appointment subject to all provisions and conditions of this contract and agrees to devote his time and energy to the duties as agent for the association and to act exclusively for it and to advance its best interests subject to such instructions as have been or may hereafter be given by the association.”

Plaintiff alleges that C. C. Criss, treasurer of the defendant company, during the negotiations with the plain[508]*508tiff, orally agreed with plaintiff as follows: “That they would like to have him adjust and settle a few minor claims in Great Falls, Montana; that the adjusting of the claims would assist plaintiff in making contacts and help him to write insurance; that if the adjusting of the claims became burdensome or took up the time that he should be giving to the writing of insurance, that the company, in that case, would either send a claim adjuster to take care of the claims or would pay plaintiff additional compensation for his time and recompense him for his expenses.” Plaintiff testified that he adjusted 2,157 claims for losses that were not covered by his contract of hire and that the reasonable value of his services in handling them was $10,000.

• According to the evidence, plaintiff went to Great Falls and took over the office about June 10, 1930. The contract was not finally approved by an executive officer of the defendant, as required by the contract itself, until June 16, 1930. We are of the opinion that the alleged oral agreement cannot be admitted in evidence to contradict or vary the terms of the written agreement, it having been made as a part of the preliminary negotiations leading up to the making of the written contract. Sylvester v. Carpenter Paper Co., 55 Neb. 621, 75 N. W. 1092; Crook v. O’Shea, 126 Neb. 67, 252 N. W. 456; Weidenfeld v. Olson, 132 Neb. 303, 271 N. W. 806. The provisions of the contract heretofore set forth relating to the services to be performed by plaintiff are indefinite and uncertain in some respects. We know of no better way of determining the intent of the parties than by giving the contract the effect that the parties themselves gave it. Plaintiff worked under the contract for 33 months and during that time there were many acts and much correspondence which bear directly upon the meaning of the contract as the parties themselves construed it.

The record discloses that plaintiff took over the agency about June 10, 1930. On June 14, 1930, plaintiff wrote the company treasurer that “there were around one hundred unpaid claims on file in this office when I arrived.” While [509]*509the plaintiff contends that these claims were taken in to the home office, nevertheless it appears that they were soon in his hands for handling. It is clear, therefore, that plaintiff commenced handling claims almost from the very beginning of the employment. This is established in a letter from plaintiff to the company treasurer under date of June 25, 1930, in which he said that we “have waded in with the result that we have the collections running along smoothly and the pending claims taken care of up to date.”

On October 16, 1931, the assistant secretary of the company wrote to the plaintiff regarding a charge of $300 for the office equipment in the Great Falls office as follows: “We were informed further that your claim adjustments have been meeting with the approval of the claims committee and it seems quite likely that you are spending a good deal of time on them. In view of all this, and further in view of the fact that probably in the future you will be called upon to take care of unusual situations which might arise, we are asking the accounting department to relieve your account of the $300 charge and yod will not be annoyed further about it.”

On December 9, 1931, plaintiff wrote the company’s agency director in part as follows: “There are many of the collections on accounts which are notified to pay this office who for some reason or other remit direct to the home office. We get nothing whatever by way of returns out of these accounts but we do get all of the claims to pay that arise from this very business who pay direct to the home office, and when I say that these claims take up 75% of our time, I am putting it mildly. Then too the postage is no small item in the handling of these claims. On the whole works where the business is paid direct into the home office we do not realize a cent. We have come to the place where we must get something for our work on claims and we don’t know of any other source from which to expect it; if you do we would certainly be glad to hear from you.”

[510]*510On June 30, 1932, the company’s superintendent of claims wrote the plaintiff as follows: “We have your letter with further reference to compensation for handling claims and in replying beg to advise that in view of the fact that we are in the midst of one of the greatest financial stringencies the country has ever known, during this time and in view of the fact that we find it absolutely necessary to cut salaries and expenses wherever possible, we do not feel that we could, right at this time, recommend any increase of expenditure on the part of the association.”

And on August 23, 1932, plaintiff wrote the agency director of the company as follows: “This claim situation is very serious in Montana and I find it is the same all over the country. It takes practically all my whole time and as you know I don’t get anything from settling claims but have to depend upon the collections and on the new business-which I get off the territory.”

We have examined all the correspondence in the record and nowhere does the plaintiff claim that he was entitled to additional compensation for handling claims under an agreement. We are of the opinion that the evidence quoted herein clearly indicates that plaintiff knew that he was to handle claims as a part of the services to be rendered under the written contract. He used the fact that the work on claims was excessive as a basis for obtaining the cancelation of the $300 charge for office equipment. He attempted to get his commission schedule increased for the same reason.

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Cite This Page — Counsel Stack

Bluebook (online)
282 N.W. 487, 135 Neb. 506, 1938 Neb. LEXIS 214, Counsel Stack Legal Research, https://law.counselstack.com/opinion/dunn-v-mutual-benefit-health-accident-assn-neb-1938.