Ellsworth v. Peoples Life Insurance

247 Ill. App. 161, 1927 Ill. App. LEXIS 49
CourtAppellate Court of Illinois
DecidedOctober 25, 1927
DocketGen. No. 7,803
StatusPublished
Cited by2 cases

This text of 247 Ill. App. 161 (Ellsworth v. Peoples Life Insurance) is published on Counsel Stack Legal Research, covering Appellate Court of Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Ellsworth v. Peoples Life Insurance, 247 Ill. App. 161, 1927 Ill. App. LEXIS 49 (Ill. Ct. App. 1927).

Opinion

Mr. Justice Jones

delivered the opinion of the court.

Appellee, Arnot L. Ellsworth, began suit for malicious prosecution and false imprisonment in the circuit court of Winnebago county against Walter A. Milder and The Peoples Life Insurance Company. The suit was dismissed as to Milder. There was a trial by jury, verdict and judgment against appellant, The Peoples Life Insurance Company, for $4,000, and an appeal has been prosecuted to this court.

As grounds for reversal, it is urged that the evidence does not show that appellant was guilty of maliciously prosecuting appellee or causing him to be falsely imprisoned ; that the prosecution of appellee was not instituted by authority of appellant, or ratified by it, and that the evidence was sufficient to show probable cause for the prosecution.

The evidence shows that appellee had a wife and three children. For several years he had been in the insurance business. He was assistant superintendent for the Western and Southern Insurance Company with offices in Rockford, Illinois, with 21 employees under him. His salary of $50 per week and commissions amounted to almost $4,000 a year. Milder was the State manager for the appellant company. In January, 1925, he began negotiations with appellee, Ellsworth, to enter the employ of appellant as district manager. During these negotiations Ellsworth and Milder went to Chicago and had a conference with E. J. Cotter, an assistant secretary of the company.

Appellee testified that in that conversation Cotter said that Milder had charge of the territory and anything he said or did was all right with the company. He also testified that Milder said he would pay $1,000 to open an office, together with certain office expenses including salary of a stenographer or bookkeeper, with advances for five men as solicitors or agents. On February 16, 1925, a written contract was entered into between appellant and appellee, by the terms of which appellee was appointed to canvass for insurance personally and through agents. All collections were to be forthwith paid over to the appellant, and appellee was to securely hold all money belonging to appellant in trust, separate and distinct, and in no case whatsoever to make any personal or other use of said- funds. Appellee was to have a drawing account of $50 per week for six months, together with commissions.

Appellee opened an office in Rockford and employed a stenographer and three solicitors who had previously worked for him. He testified that Milder afterwards told him he might use the money collected on premiums to pay advances to his agents on business written by them, the amounts to be $85 per week and divided between three agents. Milder and three solicitors corroborated appellee in his statement. Appellant loaned appellee $350 evidenced by two notes, one for $200 and the other for $150. This money was used to pay advances to agents, and a book account was kept of the payments, all of which were made to four agents, except $70 which was paid to the stenographer. Milder claimed that the stenographer was not an agent and that appellee was not authorized to pay any part of this money to her. He also claims that appellee paid out a total of $379.18; that he collected $147.53 in premiums, which together with the $350 borrowed made a total of $497.53, leaving a balance in his hands of $118.35, for which no account had been made, and that appellee did not devote his entire time to the business of appellant as provided for by the contract.

On the evening of April 14, 1925, Milder, without the knowledge of appellee, went to appellee’s officé and got possession of certain books and accounts. The next morning Milder called appellee to a room in the Kelson Hotel. Three of appellee’s agents were in the room. Milder told appellee he was at the end of his rope and demanded a check up on receipts and disbursements. Milder asked each of the agents what they had received. After each had stated what he had received, a written statement was signed by appellee in which he admitted he had received the $147.53 due appellant and that no remittance had been made to appellant. Of this amount $49.18 ivas for premiums on policies issued on members of appellee’s own family, leaving $98.35 on which appellee claimed he was entitled to commissions. Milder demanded payment of the balance due and told appellee he would give him until 10 o’clock that night to pay. He testified that he told appellee he did not wish to make it impossible for him to go into business; that he did not wish to injure-him, and for this reason he would let appellee resign, which appellee did in writing. Two days later Milder sent appellee a telegram in which he stated that he did not intend to chase him for the money due, but unless prompt restitution was made he would be compelled to take such action as was necessary to make an example of him, and that unless appellee acted quickly ‘ ‘he would sure live to regret it. ’’ Milder testified that he called Mr. Cotter up on the ’phone and talked to him before he sent this telegram.

On July 13, 1925, Milder called at appellee’s home for payment and appellee ordered him to get out. The next day Milder called on the State’s attorney and told him that appellee had collected money for which he had not accounted. The State’s attorney told him it was a difficult case to prosecute and that he ought to have some paper or statement. Later Milder showed the State’s attorney the statement signed by appellee in which he admitted the collection of $147.53, and the State’s attorney said the statement was sufficient and Milder could take out a warrant. Milder swore out a warrant charging appellee with larceny of $98.35. Appellee was arrested and confined in jail over night. A second warrant was issued charging appellee with embezzlement of $98.35. There was a preliminary hearing before a justice of the peace on this second warrant and appellee was bound over. Milder testified before the grand jury. Appellee was later tried and acquitted, and this suit was commenced.

On the day after the preliminary hearing before the justice of the peace, appellee’s attorney wrote a letter to appellant in which he told appellant of the arrest of appellee and of his having been bound over; that it seemed to the attorney that this should not have been a criminal prosecution; that there was a sharp difference between Milder and appellee as to the expenses of the office and commissions on one policy; that there was evidence corroborating appellee’s contention; that in view of the dispute a great injustice had been done'appellee; that there was so much feeling between appellee and Milder that there was no chance for them to get the matter settled, so the attorney was writing to appellant; that appellee felt sure that there was money due him from appellant, but that if, after an accounting, it was found that appellee owed the company he would pay it; that the writer would be glad to co-operate with appellant in an effort to have the matter fully settled, and asked for a reply. On July 23, 1925, appellant replied that it did not believe it should interfere with the trial, and that it appeared to appellant that the issues ought to be determined in court.

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

Related

Hughes v. New York Central System
155 N.E.2d 809 (Appellate Court of Illinois, 1959)
Neeson v. Lake View Dairy Co.
1 N.E.2d 519 (Appellate Court of Illinois, 1936)

Cite This Page — Counsel Stack

Bluebook (online)
247 Ill. App. 161, 1927 Ill. App. LEXIS 49, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ellsworth-v-peoples-life-insurance-illappct-1927.