McInnis v. National Casualty Co.

129 N.W. 125, 113 Minn. 156, 1911 Minn. LEXIS 721
CourtSupreme Court of Minnesota
DecidedJanuary 6, 1911
DocketNos. 16,791—(150)
StatusPublished
Cited by2 cases

This text of 129 N.W. 125 (McInnis v. National Casualty Co.) is published on Counsel Stack Legal Research, covering Supreme Court of Minnesota primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
McInnis v. National Casualty Co., 129 N.W. 125, 113 Minn. 156, 1911 Minn. LEXIS 721 (Mich. 1911).

Opinion

Start, C. J.

This action was brought in the district court of the county of Hennepin to recover from the defendant $1,000. The complaint alleged in effect that the defendant was a corporation, and that on [157]*157April 22, 1909, the defendant entered into a contract with plaintiff to pay him $1,000 in consideration of his retiring from the agency of Barnes & Mclnnis, as state managers of the defendant, and that he did so retire. The answer admitted that the defendant was a corporation, denied the other allegations of the complaint, and affirmatively alleged that, if the agreement alleged in the complaint was in fact entered into, there was no consideration therefor, and, further, what the terms of the alleged agreement were, as it was informed and believed. There was a verdict for the pláintiff for the amount claimed. The defendant appealed from an order denying its blended motion for judgment notwithstanding the verdict or for .a new trial.

The assignments of error raise the questions whether the verdict is sustained by the evidence and whether the trial court erred in its rulings as to the admission of evidence or in its charge to the jury. '

There was evidence tending to show the following facts:

The plaintiff and G. W. Barnes were partners under the firm name of Barnes & Mclnnis, having their place of business at Minneapolis, and as such were the state managers of the defendant’s casualty insurance business. The plaintiff had been, for some thirteen years prior to entering the defendant’s services, engaged in casualty insurance business as an officer of a company whose business the defendant reinsured. On February 27, 1909, the parties entered into a written agreement (Exhibit O), the here material provisions of which are as follows:

“Any time on or after June 1, 1909, should either party desire to retire from the agency of Barnes & Mclnnis, state managers of the National Casualty Company of Detroit, such retirement shall be subject to the following conditions:

1. Such retirement to be fully concurred in by the remaining party.

2. That such retirement shall be concurred in by the National Casualty Co.

3. That the agency name, Barnes & Mclnnis, shall remain unchanged for a period not to exceed six months from date of retire[158]*158ment of either party, subject, however, to change at the option of the remaining party.

4. That said retiring partner shall give at least thirty (30) days’ notice of intention to retire to said remaining partner and said company.

5. That said retiring partner agrees not to engage in the business of casualty insurance within Minnesota for a period of not less than six (6) months from consummation of this agreement.

6. That said retiring partner agrees to accept from said National Casualty Co. the sum of $1,000. * * * Same to be in full settlement of all equitable claims said retiring partner may have against or hold in said agency, or the business by it controlled.

7. Said parties agree that, in event of incompatibility and disagreement that said company shall nominate which party shall retire, and that such decision by said company shall be final.

8. Said parties agree that should either party to said agency die during the pendency of this agreement, that the equitable value of the interest of said deceased shall be $1,000, payable as hereinbefore stated, and said payments shall constitute full settlement of all claims or interest in or against said agency or the National Casualty Co.”

This agreement was signed by each of the partners. Then followed immediately below their signatures this provision, “Approved and accepted this 27th day of February, 1909,” which was signed by the vice president and manager of agencies for the defendant, whose authority to represent the defendant was conceded.1

On April 15, 1909, the vice president of the defendant saw the plaintiff, and told him the company did not want Barnes to resign from the agency, and wanted him to stay, and that, in view of the fact that he and the plaintiff did not get on well together, and that the plaintiff was going to leave the service June 1 he would like to have him leave at once. The plaintiff replied that the company could have his resignation if it would take care of him and his contract. Thereupon, and on April 17, he wrote a letter (Exhibit A) which was to the effect following:

“At your request I herewith tender my resignation as a member of [159]*159the firm of Barnes & Mclnnis Agency, providing, however, that the company will agree to take care of my interests the same as if I continued with them up to the first of June. The memorandum or agreement [Exhibit C] entered into between yourself, Mr. Barnes, and myself, dated February 27th, to be carried out the same as originally intended ánd the same salary that I now receive to be continued up to June first.

In view of the fact that I am willing to continue as agreed up to June first, it seems to me that my position is fair, and when my resignation is accepted, you can rest assured that, in leaving the services of the company you will receive nothing’ in return but my hearty support and best wishes.”

The vice president answered in writing to this effect:

“I am in receipt of your resignation as one of our Northwestern managers, and regret that you are severing your connections. * * * I appreciate your attitude toward the company and the Northwestern Department. I could not have entertained any other idea of what your attitude would be. Your proposition relative the May salary is fair, and will be agreed to. Other payments as per contract will, of course, be remitted promptly.”

The plaintiff retired from the agency in accordance with his resignation. The testimony of the plaintiff was contradicted in some important particulars by that of the vice president. The trial court submitted to the jury the question whether there was an agreement between the parties to the effect that, if the plaintiff retired from the agency before June first, as requested, he should be paid $1,000, as provided by the contract of February 27. (Exhibit C.) The defendant contends that the evidence was not sufficient to sustain the finding that such contract was made, and especially that no consideration was shown for such alleged agreement.

The record does not justify the claim. The documentary evidence must be construed as a whole, and with reference to the undisputed relations of all the parties to each other. So construing them, the contract of February 27 (Exhibit C) is clear and definite. The subject-matter of the contract was the defendant’s agency and business which was conducted for it by the partners, and the protection of the [160]*160business in case one of the partners should, on or after June 1, retire. The business was protected by making such retirement conditioned upon the defendant’s concurrence, and the giving to it the right to say, in case of disagreement, which one of the partners should retire, and by a covenant on the part of the retiring partner not to engage in the casualty business in Minnesota for six months thereafter. In consideration of these stipulations the retiring partner agreed to accept from the defendant $1,000 in full settlement of all claims against the agency or business by it controlled.

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Related

Leary v. Cusick
210 N.W. 591 (Supreme Court of Minnesota, 1926)
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186 N.W. 704 (Supreme Court of Minnesota, 1922)

Cite This Page — Counsel Stack

Bluebook (online)
129 N.W. 125, 113 Minn. 156, 1911 Minn. LEXIS 721, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mcinnis-v-national-casualty-co-minn-1911.