Leyenberger v. Paul

40 Ill. App. 516, 1890 Ill. App. LEXIS 640
CourtAppellate Court of Illinois
DecidedMay 5, 1891
StatusPublished
Cited by6 cases

This text of 40 Ill. App. 516 (Leyenberger v. Paul) 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
Leyenberger v. Paul, 40 Ill. App. 516, 1890 Ill. App. LEXIS 640 (Ill. Ct. App. 1891).

Opinion

Gary, J.

This is the fourth time this case has been here. 12 Ill. App. 635; 17 Ill. App. 167; 25 Ill. App. 480. No discussion of the real merits of the case is in any of the opinions there reported.

On the last appeal it was said that this court was not “ entirely satisfied ” that there was a want of probable cause for the criminal prosecution, to recover damages for which this action was brought. Whether there was evidence of the other elements of such a cause of action, is not alluded to in either report.

The relation between these parties existed by written agreements. The first is:

“ Chicago, September 9, 1878.

“ J. R. Paul, Esq.,

“ Dear Sir: This is to certify that I have this day agreed

to pay you on all business which you bring hereafter to this company, the following rates of commission: Thirty per cent of the first premium, and a renewal commission of four per cent on four year premiums.

“ Very truly,

“ C. Leyenberger, State Agent.”

“I hereby agree to pay above commission to the heirs of James E. Paul should lie die.”

(On the back:) “ Should you at any time discontinue your work for this company, said commission to be paid to whom you may direct.”

The second:

“ Chicago, January 16, 1880.

“ Agreement by and between Charles Leyenberger of the first part and James E. Paul, of the second part, both parties living in Chicago. Mr. Leyenberger agrees to continue the old contract with J. E. Paul, just the same as last year, which is thirty per cent of the first premium and. for four fours, with all the agreements in the contract.

• “ Also, he is to let J. E. Paul have $200 and charge it to him in a separate account by itself, and it is to stand there, Paul not to be called on for it only as his four fours come in on the past fifteen months business, and as fast as they come in there to be placed to J. E. Paul account. And that J. E. Paul is to have $50 at any time in addition to the two hundred, and is to have it on the same agreement, Paul not to have it before March, and not to call for it if he can get along without it.

“Leyenberger to pay Paul $60 per month if he shall call for it, $15 a week, $30 twice a month, or $60 at the end of the month, and to continue for the term of a year. If Paul’s commissions exceed §60 a month during the year, he has the right to draw all over §60. Paul to work for M. B. L. I. C., and get all the policies he can for the company.”

“J. B. Paul,

“C. Leyenberger. ”

And the last is:

“ The Mutual Benefit Life Insurance Company, of Newark, N. J.

“ Lewis C. Grover, President,

“Cliarlés Leyenberger, State Agent, 5 Tribune Building.

“ Chicago, May 5, 1881.

“James B. Paul, Esq., Chicago, Ill.

“Dear Sir: I hereby agree to pay you upon business you may secure in future a commission at thirty per cent on first annual premium, and a renewal commission of four per cent on-the four subsequent renewals of the same. Above rates to apply on all policies excepting ten and fifteen yr. endts., five payments life and single premiums.

“Very truly yours,

“0. Leyenberger, State Agent.”

“ The above to cover all business taken by said Paul since February 1, 1881.

“ Leyenberger.”

No question arose between the parties as to the meaning of these writings until the 8th of October, 1881. Paul had received §60 per month, or §720, under the last paragraph of the second agreement. If that §60 per .month was a fixed salary, regardless of commissions earned, Leyenberger owed Paul §94.27; if it was an advance upon commissions to be earned, then Paul owed Leyenberger §292.79. Each party insisted upon the position most favorable to his own interest, but no settlement was made, nor does it appear that any ill feeling arose.

Two renewal premiums amounting to §82.65 became due November 27th and December 2, 1881, from policy holders at the stock yards, on which Paul was entitled to four per cent. He was in the habit of collecting renewal premiums. He went to the office of Leyenberger and obtained the renewal receipts, saying he was going to the stock yards; collected the money and refused to pay it over without a settlement of the accounts. How, it is clear law that he ought to have paid over that money, deducting only his commission at four per cent thereof. The money belonged to the insurance company. If Paul had any claim upon Leyenberger for salary he was to call on him for it.

The insurance company might have maintained an action on the case against him for not paying it over, in which action he could not have set off anything due to him on other matters, even if his construction of the written agreements is the right one. 1 Ch. Pl., Ed. 1883, page 151; Ashley v. Root, 4 Allen, 504; Tinkham v. Heyworth, 31 Ill. 519; Rae v. Hulbert, 17 Ill. 572; 1 Ch. Pl., same ed., 112.

In such an action, a capias ad satisfaciendum might be the final process upon which imprisonment might follow failure to pay. How, if Paul took the renewal receipts,intending to withhold the money collected upon them, his conduct differs from embezzlement, as wilful trespass de ionis asportatis differs from larceny. The furtive, clandestine element is lacking. Hnder these circumstances, Leyenberger consulted an attorney. The attorney, from Leyenberger and his own investigations, (Brown v. Smith, 83 Ill. 291,) learned all the facts, and advised Leyenberger that Paul was guilty of embezzlement. If Leyenberger believed that advice, there was probable cause for the prosecution. Cooley on Torts, 2d Ed., 212.

It is always a question for the jury whether the advice was believed, and in many cases it is loosely said that such advice is no protection if sought as a means of covering malice, as in Ames v. Snider, 69 Ill. 376. What is meant by that is shown in Ross v. Innis, 26 Ill. 260 — that the advice was not believed. Malice alone is not enough to ground the action upon. It is unnecessary to add anything upon that point to what was said in this case when it was here the first time. The motive of the prosecution is only important if the want of probable 'cause is proved. Both Leyenberger and the attorney testified to the advice, and Leyenberger that he believed it.

Without deciding that the verdict of the jury ought to be set aside as against evidence on the want of probable cause, there is another asj>ect of the case in which the facts, as they existed independent of that advice, are to be considered.

The pecuniary condition of Leyenberger was proved. He had a home worth $20,000, incumbered for $7,000, and about $4.000 in other property. The verdict is for $2,700. The actual damages proved did not exceed $50. There was no imprisonment. Paul gave bail at once. The contracts between the parties were not for a salary, but commission.

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Bluebook (online)
40 Ill. App. 516, 1890 Ill. App. LEXIS 640, Counsel Stack Legal Research, https://law.counselstack.com/opinion/leyenberger-v-paul-illappct-1891.