Holdsworth v. Nissly

520 N.W.2d 332, 1994 Iowa App. LEXIS 54, 1994 WL 417327
CourtCourt of Appeals of Iowa
DecidedMay 26, 1994
Docket93-0250
StatusPublished
Cited by4 cases

This text of 520 N.W.2d 332 (Holdsworth v. Nissly) is published on Counsel Stack Legal Research, covering Court of Appeals of Iowa primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Holdsworth v. Nissly, 520 N.W.2d 332, 1994 Iowa App. LEXIS 54, 1994 WL 417327 (iowactapp 1994).

Opinion

HABHAB, Judge.

In 1982 plaintiff Loren Holdsworth became employed as a career agent with Farm Bureau Life Insurance Company, FBL Insurance Company, and Farm Bureau Mutual Insurance Company. These three companies have combined management and will be referred to collectively as “Farm Bureau.” Holdsworth was hired to solicit applications for insurance and to service policyholders’ accounts. He signed a new contract each year he was employed by Farm Bureau. Each contract could be canceled by either party at any time without cause upon the giving of notice in writing to the other party.

Holdsworth was assigned to the Dallas-Madison Agency. His supervisor was Donald Nissly. Nissly had been a career agent before he was promoted to area manager. Nissly had developed a list of accounts in rural Dallas County, which was referred to by the parties as a “book of business.” Holdsworth inherited this book of business when he began working for Farm Bureau.

In 1990 Nissly came under pressure from Farm Bureau management because of his inability to recruit new career agents. Nissly drafted a written proposal in May 1990 which he presented to his supervisor, Christopher Van Note. The proposal stated Nissly would like to stay in his present position until the end of 1990 and then he would take a position as a career agent. It also stated:

Loren Holdsworth has expressed misgivings about adjusting to a sometime new A.M. [area manager] and maintaining company production expectations. It would be in everyone’s best interest for him to decide on a career change for reasons important to him and his family.

Van Note discussed the proposal with Nissly, and in his notes of the meeting wrote that Nissly wanted to remain for the balance of 1990 and during this period to remove Holds-worth as an agent, which would give Nissly his old book of business. Van Note agreed to the proposal, subject to the conditions that Nissly make progress with recruiting and keep him informed of the situation in the agency.

In August 1990 Nissly and Van Note had a meeting with Holdsworth to inform him he would be terminated as a career agent in the Dallas-Madison Agency at the end of the year. Holdsworth went to Van Note’s supervisor, Ronald Price, and asked to keep his job. Price told Holdsworth he would have Van Note meet with him again. At this second meeting, Van Note told Holdsworth a story about a former student. Holdsworth interpreted the story as a warning Van Note was unhappy he had gone to Price with his concerns. Van Note refused to reconsider his previous decision.

In September 1990 Holdsworth sent a letter to Price, asking him to discharge Van Note. He also sent letters to several Farm Bureau officials, complaining about his treatment by Nissly and Van Note. On September 17, 1990 Price called Holdsworth into his office and discharged him.

Holdsworth filed this suit against Nissly and Farm Bureau. He claimed Nissly tor-tiously interfered with his contract with Farm Bureau by attempting to cause his discharge. He also raised an unjust enrichment claim against Nissly. Holdsworth claimed Farm Bureau tortiously interfered *335 with a prospective business advantage with his insurance clients by discharging him. 1

The claims of interference with a prospective business advantage and interference with an existing contract were tried to a jury. The parties agreed to try the unjust enrichment claim against Nissly to the court. After plaintiff presented his evidence, defendants filed a motion for directed verdict. The district court reserved ruling on the motion. The case was submitted to the jury.

On a special verdict form, the jury found Nissly had intentionally and improperly interfered with Holdsworth’s career agent contract. Holdsworth was awarded $6,000 in damages against Nissly for past lost income, but no damages for future loss of income or emotional distress. The jury awarded $10,-000 punitive damages against Nissly. It also found Nissly’s conduct was not directed specifically at plaintiff.

The jury found Farm Bureau had intentionally and improperly interfered with Holdsworth’s prospective business relationships with insurance clients. He was awarded $102,597 for past lost income and $190,258 for future loss of income. No damages were awarded for emotional distress. $1 million in punitive damages was awarded against Farm Bureau. Again, the jury found Farm Bureau’s conduct was not directed specifically at Holdsworth.

Holdsworth filed a motion for new trial against Nissly only on the issue of damages. Defendants filed motions for new trial and judgment notwithstanding the verdict. The district court issued one ruling on all posttrial motions, including the reserved motion for directed verdict.

The district court granted a new trial against Nissly on liability and damages. The court determined that if the verdict against Farm Bureau accurately reflected the jury’s findings on past and future economic loss from the discharge, the award against Nissly was both inconsistent and inadequate, and a strong inference arose it was the product of prejudicial ulterior motive. The court noted the disparity between the damages against Nissly and Farm Bureau for future loss of income. The court denied Nissly’s motion for judgment notwithstanding the verdict, finding there was substantial evidence in the record to show Nissly convinced Farm Bureau to terminate Holdsworth’s contract and give him Holdsworth’s book of business.

The court dismissed the unjust enrichment claim against Nissly. The trial court found Holdsworth had an adequate remedy at law under a theory of tortious interference with an existing contract. This ruling has not been appealed.

The court granted Farm Bureau’s motions for directed verdict and judgment notwithstanding the verdict. The court determined plaintiff failed to present any evidence Farm Bureau acted improperly because under the parties’ contract, Holdsworth could be discharged at any time. Holdsworth appealed.

I. Holdsworth contends defendants failed to preserve error at trial on the issue of the sufficiency of the evidence because they only raised a general objection to the jury instructions. He believes defendants should not have been able to raise the issue of the sufficiency of the evidence in their posttrial motions.

Where the district court overrules a motion for directed verdict, a party does not waive error by agreeing to jury instructions which correctly state the law. Hartman v. Norman, 253 Iowa 694, 697, 112 N.W.2d 374, 376 (1961). By agreeing to the jury instructions, defendants are not agreeing there was a ease for the jury. Id. We conclude defendants sufficiently preserved error to raise the issue of the sufficiency of the evidence in posttrial motions.

II. Holdsworth contends the district court should not have granted a directed verdict and judgment notwithstanding the verdict to Farm Bureau on his claim of interference with prospective business advantage. He claims there was sufficient evidence of Farm Bureau’s improper motive or conduct to submit the issue to the jury. He points out that the district court found there was substantial evidence of Nissly’s improper motive.

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

Related

Cite This Page — Counsel Stack

Bluebook (online)
520 N.W.2d 332, 1994 Iowa App. LEXIS 54, 1994 WL 417327, Counsel Stack Legal Research, https://law.counselstack.com/opinion/holdsworth-v-nissly-iowactapp-1994.