Horton Insurance Agency, Inc. v. Robinson

1991 OK CIV APP 74, 824 P.2d 397, 63 O.B.A.J. 547, 1991 Okla. Civ. App. LEXIS 110, 1991 WL 319955
CourtCourt of Civil Appeals of Oklahoma
DecidedAugust 6, 1991
DocketNo. 73326
StatusPublished

This text of 1991 OK CIV APP 74 (Horton Insurance Agency, Inc. v. Robinson) is published on Counsel Stack Legal Research, covering Court of Civil Appeals of Oklahoma primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Horton Insurance Agency, Inc. v. Robinson, 1991 OK CIV APP 74, 824 P.2d 397, 63 O.B.A.J. 547, 1991 Okla. Civ. App. LEXIS 110, 1991 WL 319955 (Okla. Ct. App. 1991).

Opinion

MEMORANDUM OPINION

JONES, Judge:

This appeal from summary judgment appears to be a case of first impression in this jurisdiction involving the interpretation of 36 O.S.1983 § 1427, set forth in its entirety as an addendum to this opinion. The Ap-pellee, Horton Insurance Agency, Inc., filed a petition in District Court asking for enforcement of an oral agreement between Horton and the Appellant, Robinson. The court sustained a Motion for Partial Summary Judgment on the issue of liability and a second summary judgment on the amount of damages. The court awarded $6,015.74 plus attorney fees to Horton.

On appeal, Robinson asks whether the District Court erred by granting summary judgment on the issue of liability; whether it improperly granted summary judgment on the issue of damages prior to the fifteen (15) day time limit in Rule 13, Rules for District Courts; and, whether the award of attorney fees was contrary to the mandate of 12 O.S.1981, § 936. We hold that the District Court properly granted summary judgment in both instances, and that attorney fees were justified.

The record shows that Horton Insurance Agency, Inc., acting through its President, Richard Horton, and Kent Robinson were both licensed insurance agents. Robinson was an exclusive agent for Farmers Insurance Group, and Horton enjoyed a consulting arrangement with Brentwood Financial Corporation. Because Horton did not have direct access to policies issued by Farmers, he agreed to channel the Brentwood business through Robinson in exchange for fifty percent of the commission that Robinson would receive from Farmers. In a separate agreement with Brentwood, Horton negotiated a brokerage fee for placement of Brentwood’s policies with Farmers. As agreed, Horton received a check for $24,-457.00 as payment in full from Brentwood, but received nothing from Robinson. '

Horton initiated the instant lawsuit on May 27, 1987, to recover his share of the commission from Robinson. Robinson claims that he is excused from paying for the client referral because the agreement which Horton sought to enforce was made in violation of 36 O.S.1983 § 1427. After a determination that the Statute contained no prohibition against the enforcement of the agreement between Horton and Robinson, the District Court entered partial summary judgment on the issue of liability. A second partial summary judgment on the issue of damages was entered on April 6, 1989. Although Horton originally asked for a larger amount, he agreed to judgment for minimal damages of $6,015.34, on the understanding that the additional amount would be reserved for determination at a later hearing. Final summary judgment was entered in favor of Horton on May 3, 1989, in the lesser amount of $6,015.74 plus, attorney fees. It is from this judgment that Robinson appeals.

I

Whether the District Court properly entered summary judgment depends on whether there were any material facts in dispute. The materiality of disputed facts must be viewed in light of the Court’s interpretation of 36 O.S.1983 § 1427. We find that the Statute does not govern the agreement between Horton and Robinson. Therefore, any evidence tending to prove or disprove a violation of the Statute is irrelevant to resolving the present litigation. For example, the questions of whether Horton violated a fiduciary duty to Brentwood by concealing evidence of the commission which Robinson owed him, or the court’s refusal to consider evidence of a “bogus” back-dated agreement are not dis-positive of the issues in this case. Because the purpose of the Statute is for the protection of the insured, any infractions thereof would necessarily be tried in a separate [400]*400lawsuit initiated by Brentwood. Robinson has no standing to object to Horton’s alleged non-compliance with the Statute. Accordingly, whether Brentwood waived its rights by entering into a subsequent memo-rialization of a prior oral agreement, or any other evidence relating to the relationship between Horton and Brentwood will not be considered by this Court. Nonetheless, the Statute, 36 O.S.1983 § 1427(1), does not require the unlicensed consultant to offset his client’s fee by the amount of the commission, but merely provides that option to him.

This lawsuit is between two licensed agents. Title 36 O.S.1983 § 1427 applies to transactions involving persons acting in a consulting capacity and not to those acting as licensed agents. Because the licensed agent is both exempt and prohibited from being concurrently licensed as a consultant under 36 O.S.1983 § 1427(A)(2) and (D), special provisions in the Statute govern the rights and responsibilities of licensed agents acting as consultants to their clients. Subsections C and H, which apply to licensed consultants, also impose certain contractual and fiduciary duties upon the un-licensed consultant under the provisions of 36 O.S.1983 § 1427(1).

Contrary to Appellant’s argument, Subsection E applies only to the “licensed consultant” and not the “licensed agent who holds himself out to be a consultant”. This section narrows the scope of the licensed consultant’s activities and prohibits him from charging a fee to an agent. The licensed agent acting as a consultant is not so restricted because his activities do not fall under the purview of Subsection E. Horton is therefore not precluded by Statute from receiving both a consulting fee from Brentwood and a Commission from Robinson. Absent the Statute, the instant lawsuit must be resolved as a suit for breach of contract, and any controverted facts must. relate to those issues which tend to prove or disprove the existence of a breach.

II

This leaves for consideration the question of whether the District Court abused its discretion in finding that Robinson breached the terms of his contract with Horton. A valid and enforceable contract requires an offer, acceptance, and consideration. National Outdoor Advertising Co., v. Kalkhurst, 418 P.2d 661 (Okl.1966). A breach of performance by one party gives rise to a cause of action for breach of contract by the other.

Appellant argues that his contract with Horton was based on illegal consideration in the form of the allegedly invalid agreement between Horton and Brent-wood. Appellant relies upon the case of Thomas v. Owens, 241 P.2d 1114, 206 Okl. 50 (1952) which held that a contract founded on illegal consideration or which is made for the purpose of furthering any matter prohibited by Statute will not be enforced by the Courts of this state. Id. 241 P.2d at 1117. However, the facts in the case at bar do not show that the subject contract was made for the purposes of furthering something illegal, or that consideration was illegal, as discussed above.

Based on the pleadings, affidavits and evidence contained in the record, it is clear that Robinson accepted the benefits of Horton’s performance and that Horton thereby suffered detriment. This is the form of valid consideration defined by the Court in State ex rel. Derryberry v. Kerr McGee Corp. 516 P.2d 813 (Okl.1973). Under the holding in Webster v. Woods, 586 P.2d 337, 339 (Okl.App.1978), the District Court fulfilled its function to give effect to the consensual agreement of the parties, and since the record clearly shows that Robinson did not adhere to his side of the bargain, the Court correctly rendered summary judgment.

III

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Related

Flanders v. Crane Co.
1984 OK 88 (Supreme Court of Oklahoma, 1984)
Bentley v. Hardin
577 P.2d 471 (Court of Civil Appeals of Oklahoma, 1978)
State Ex Rel. Derryberry v. Kerr-McGee Corporation
1973 OK 132 (Supreme Court of Oklahoma, 1973)
National Outdoor Advertising Co. v. Kalkhurst
1966 OK 85 (Supreme Court of Oklahoma, 1966)
Holbert v. Echeverria
1987 OK 99 (Supreme Court of Oklahoma, 1987)
Webster v. Woods
586 P.2d 337 (Court of Civil Appeals of Oklahoma, 1978)
Thomas v. Owens
1952 OK 64 (Supreme Court of Oklahoma, 1952)

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1991 OK CIV APP 74, 824 P.2d 397, 63 O.B.A.J. 547, 1991 Okla. Civ. App. LEXIS 110, 1991 WL 319955, Counsel Stack Legal Research, https://law.counselstack.com/opinion/horton-insurance-agency-inc-v-robinson-oklacivapp-1991.