John J. Sullivan v. Massachusetts Mutual Life Insurance Company

611 F.2d 261, 1979 U.S. App. LEXIS 11005
CourtCourt of Appeals for the Ninth Circuit
DecidedOctober 23, 1979
Docket77-3755
StatusPublished
Cited by18 cases

This text of 611 F.2d 261 (John J. Sullivan v. Massachusetts Mutual Life Insurance Company) is published on Counsel Stack Legal Research, covering Court of Appeals for the Ninth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
John J. Sullivan v. Massachusetts Mutual Life Insurance Company, 611 F.2d 261, 1979 U.S. App. LEXIS 11005 (9th Cir. 1979).

Opinion

PER CURIAM:

An insurance agent’s employment was terminated and he brought this diversity action against his former employer for damages for an alleged breach of contract. He appeals the grant of summary judgment in favor of the company. We affirm.

From November 1961 through August 1973, John Sullivan was employed by Robert Woods, the general agent for Massachusetts Mutual Life Insurance Company (Massachusetts Mutual) in Los Angeles. About the time he commenced this employment, *263 Sullivan executed a document entitled “Career Contract”, which set forth Sullivan’s rights and duties as an agent representing Massachusetts Mutual (Exhibit B to Motion for Summary Judgment). This contract contained a clause providing that it was terminable at the will of either party. Sullivan was aware of this clause and did not object to it at the time he signed the contract. In March 1971, Sullivan and Massachusetts Mutual executed another document pursuant to which Sullivan was authorized to use the title “General Agent” under certain conditions (Exhibit D to Motion for Summary Judgment). This contract contained the same terminable-at-will clause, of which Sullivan was aware and to which he did not object at the time he signed the contract. By their terms, both of these contracts expired on August 31, 1973, when Woods’ status as general agent in Los Angeles terminated.

On September 1, 1973, Sullivan and William Davies executed a “General Agent’s Contract” with Massachusetts Mutual, pursuant to which they became “formula co-general agents” for the company in Los Angeles (Exhibit E to Motion for Summary Judgment). 1 This contract also contained a terminable at will clause, of which Sullivan was aware and to which he did not object at the time he signed the contract.

Massachusetts Mutual terminated Sullivan’s relationship in November 1974. Sullivan sued, contending that his tenure with Massachusetts Mutual was controlled by an oral agreement entered into in 1961. Massachusetts Mutual agreed, for the purpose of the motion, that there had been an oral agreement that Sullivan would continue in Massachusetts Mutual’s employ and advance through a series of positions to that of full general agent unless his performance proved to be unsatisfactory. But the Company insisted that the later written agreements had superseded any oral agreement on tenure.

In his opposition to the motion for summary judgment, Sullivan tendered proof of the alleged oral agreement and the representations that he would not be terminated except for good cause. Essentially, this proffered evidence consisted of: (1) a letter and a memorandum from a Massachusetts Mutual vice president, both of which referred to the allocation of costs at the time that Davies and Sullivan would change from formula to full general agents; and (2) the deposition testimony of three vice presidents of the company. The depositions did not prove the oral agreement, but they were not inconsistent with Sullivan’s contentions concerning the nature of his alleged oral agreement with Massachusetts Mutual.

The district court concluded that Massachusetts Mutual was entitled to judgment as a matter of law because it had a right to rely on the written contracts with Sullivan. The court held: (1) proof of the oral agreement, even if assumed to exist, was barred by California’s parol evidence rule; (2) the oral agreement had been extinguished in 1973 by execution of the written agreement with Massachusetts Mutual; and (3) Massachusetts Mutual could not be liable on the second count of the complaint for conspiracy to breach the employment contract because it had the right to terminate Sullivan and because it could not be held to have conspired with its own officers and agents. 2

I.

Sullivan contends that summary judgment was not appropriate because genuine issues of material fact remained in dispute. This contention assumes that the application of the parol evidence rule necessarily involves some kind of a trial of the factual assertions of the parties.

Although California law controls the substantive issues in this case, the standards for determining whether summary *264 judgment was appropriate call for application of federal law. See Fitzsimmons v. Best, 528 F.2d 692, 694 (7th Cir. 1976); Lighting Fixture & Electrical Supply Co. v. Continental Insurance Co., 420 F.2d 1211, 1213 (5th Cir. 1969). Those standards applicable to the instant case may be aptly expressed as follows:

“ * * * [Wjhere the claim or defense is predicated upon a written integrated contract that is unambiguous, the parol evidence rule may cut off the presentation of matter that would otherwise raise factual issues and hence summary judgment may be appropriate where in the absence of the parol evidence rule it would not be.” 6 Moore’s Federal Practice, ¶ 56.17[11] at 56-778-79 (1976 ed.).

The instant case turns on whether the written contracts entered into between Sullivan and Massachusetts Mutual were integrated and intended to comprise the full agreement between the parties. If so, then, as will be seen, the judgment in favor of the company was correct. Accordingly, the threshold issue is whether the district court’s determination that the written contracts were fully integrated was an appropriate matter for disposition on summary judgment.

Admittedly, California law is not completely clear on the theory whether contract integration is a matter of law or of fact. The state appellate courts have stated both that integration is a question of law for the court (see Brawthen v. H & R Block, Inc., 28 Cal.App.3d 131, 137, 104 Cal.Rptr. 486, 490 (1972)), and that the judge’s finding in this respect is a determination of fact to be made by the court. See Mobil Oil Corp. v. Handley, 76 Cal.App.3d 956, 961, 143 Cal.Rptr. 321, 324 (1978).

The relevant evidence in this case was not in conflict. The court had before it all the extrinsic evidence tendered by Sullivan with respect to the integration issue. In these circumstances, the court’s ruling on the integration issue and its determination with respect to the admissibility of Sullivan’s parol evidence involved questions of law, suitable for disposition on summary judgment. See S. M. Wilson & Co. v. Smith International, Inc., 587 F.2d 1363, 1370 — 71 (9th Cir. 1978); Burroughs Corp. v. Weston International Corp., 577 F.2d 137, 140 — 41 (4th Cir. 1978).

II.

Under California law, a written contract presumptively supersedes all prior or contemporaneous oral agreements concerning the subject matter of the written contract. See Cal.Civ.Code § 1625

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611 F.2d 261, 1979 U.S. App. LEXIS 11005, Counsel Stack Legal Research, https://law.counselstack.com/opinion/john-j-sullivan-v-massachusetts-mutual-life-insurance-company-ca9-1979.