James v. State Farm Mutual Automobile Insurance Co.

1991 OK 37, 810 P.2d 365, 62 O.B.A.J. 1228, 1991 Okla. LEXIS 36, 1991 WL 57855
CourtSupreme Court of Oklahoma
DecidedApril 16, 1991
Docket66610
StatusPublished
Cited by28 cases

This text of 1991 OK 37 (James v. State Farm Mutual Automobile Insurance Co.) is published on Counsel Stack Legal Research, covering Supreme Court of Oklahoma primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
James v. State Farm Mutual Automobile Insurance Co., 1991 OK 37, 810 P.2d 365, 62 O.B.A.J. 1228, 1991 Okla. LEXIS 36, 1991 WL 57855 (Okla. 1991).

Opinions

SIMMS, Justice:

Iris James (James), plaintiff below, appeals from an adverse judgment in her fraud action filed against Clarence Zitter-kob and Frank Green, individually-named appellees, and the collective State Farm Companies (State Farm). James appeals asserting error by the trial court in rulings concerning the admission of evidence and jury instructions. Because we find no reversible error in the trial court’s rulings, we AFFIRM the judgment of the trial court.

James, a resident of Sapulpa, Oklahoma, heard that State Farm was interested in training a qualified individual to become one of its agents in Glenpool, Oklahoma, which is located approximately eight (8) miles from Sapulpa. She immediately contacted Zitterkob, the agency manager responsible for recruiting and training new agents in the Tulsa area. Under his supervision, she began training to become an agent believing she would be placed as an agent in Glenpool. At the time of their first meeting, James was teaching in the Sapulpa School system where her husband worked as a principal. She testified, as did [367]*367her husband, that they were assured by Zitterkob that relocation to Glenpool would not be necessary in order for her to be an agent in Glenpool.

James further testified that when she met Green, Zitterkob’s supervisor, Green confirmed to her that relocation was not a requirement to her being the Glenpool agent. At this meeting, James stated that Zitterkob also said that she would soon be a State Farm agent in Glenpool. Shortly after the meeting, James resigned from her teaching position in order to take the state licensing examination.

James passed the state examination, was licensed by the State Insurance Commission, and listed with the state of Oklahoma as a State Farm agent. Trial exhibits establish that Norvel Trask, Green’s supervisor and the top executive in the regional office, authorized the listing. James testified that Zitterkob then informed her that she needed to complete an “x-dating” assignment before being placed as an agent. She began working diligently to finish the “x-dating” work which involves searching county records to obtain names, addresses and phone numbers of home owners who could be potential clients. However, a short time later, Zitterkob informed her that there was no place for her as an agent with State Farm. James then contacted Green who allegedly told her that company policy required their agents to live in the community they serve.

James testified that Zitterkob told her that he was trying to get her placed as an agent in south Tulsa or Sapulpa, as well as appealing the decision not to place her in Glenpool. Nothing came of these efforts, and James filed this suit claiming Zitterkob and Green misled her into believing that it would be no problem for her to live in Sapulpa and run the agency in Glenpool. According to James, this and other acts and omissions by the appellees constituted fraudulent misrepresentation.

The appellees’ testimony contradicted James’ allegations of “promises” of employment and need for relocation. Testimony indicated that the company did not have a “requirement” that agents live in the community they serve but that it was a practice encouraged by the company. The defense also presented a document signed by James entitled “Declaration of Understanding” in which the signer acknowledges that they understand (1) that they will not receive compensation from State Farm during the training period, and (2) that they should not change their current employment until officially approved for appointment as an agent through the regional office and execution of a State Farm Trainee Agent’s Agreement. James never signed a Trainee Agent Agreement.

I.

James first argues the trial court erred in admitting Defendant’s Exhibit I, a letter James received from Trask approximately three months after the action was filed. The trial court deleted portions of the letter which concerned an offer made by legal counsel of appellees, but admitted the exhibit over James’ objection. The letter reads as follows, with the deleted portions shown within brackets:

“Dear Mrs. James,
In light of the recent interrogatories from your lawyer, it appears that you believe you were never offered a position as a trainee agent in Glenpool. If that is your belief, it is based on a misconception. You have been offered the position [twice]: Once by letter from Frank Green dated October 26, 1984 [and again through our attorney, J. Patrick Cremin.] This is a final unconditional offer of the position in Glenpool, pursuant to our current contractual arrangements with trainee agents, which reconfirms our pri- or [two] offer[s.] We again would urge you to live in Glenpool; however, we will leave that choice up to you, as we are interested in appointing you as a trainee agent to serve our policyholders and prospects in the Glenpool area.
Please let me know within ten (10) days of your decision in this matter so that we can insure better service to the residents of Glenpool.
Sincerely,
/S/
Norvel J. Trask, CLU Deputy Regional Vice President”

[368]*368James claims this letter is an offer of compromise which is inadmissable under 12 O.S.1981, § 2408. This statute provides, in pertinent part:

“Evidence of:
1. Furnishing, offering or promising to furnish; or
2. Accepting, offering or promising to accept, a valuable consideration in compromising or attempting to compromise a claim which was disputed as to either validity or amount is not admissible to prove liability for the claim, invalidity of the claim or the amount of the claim. * * * * * *
This section does not require exclusion of evidence when it is offered for another purpose, including proof of bias or prejudice of a witness, negativing a contention of undue delay, or proof of an effort to obstruct a criminal investigation or prosecution.”

Appellees argue that the letter was not an offer to compromise the claim and that it was not offered to prove the invalidity of the claim. Rather, they offered it to prove that a mistake had occurred, mistake being a defense to fraud. Defendant’s Exhibit I was introduced and admitted during cross-examination of James. Earlier, James offered, and the trial court admitted the October 26, 1984 letter from Green which Trask refers to in his letter. In his letter to James, Plaintiffs Exhibit No. 25, Green offers the position in Glenpool to James but conditions it upon her moving to Glenpool. In their Response Brief, appellees argue that this condition was mistakenly added to the offer and the Trask offer was sent to straighten out the mistake. The letter in turn was introduced into evidence to show that the earlier condition of moving to Glenpool was a mistake and James could be the Glenpool agent without moving. Thus, appellees assert, it was “offered for another purpose” and was properly admitted.

This Court has never before construed Section 2408. The Court of Appeals applied Section 2408 in Cleere v. United Parcel Service, 669 P.2d 785 (Okla.Ct.App.1983). However, the court in Cleere

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Cite This Page — Counsel Stack

Bluebook (online)
1991 OK 37, 810 P.2d 365, 62 O.B.A.J. 1228, 1991 Okla. LEXIS 36, 1991 WL 57855, Counsel Stack Legal Research, https://law.counselstack.com/opinion/james-v-state-farm-mutual-automobile-insurance-co-okla-1991.