Metcalf v. Security International Insurance Co.

261 N.W.2d 795
CourtNorth Dakota Supreme Court
DecidedJanuary 11, 1978
DocketCiv. 9382
StatusPublished
Cited by49 cases

This text of 261 N.W.2d 795 (Metcalf v. Security International Insurance Co.) is published on Counsel Stack Legal Research, covering North Dakota Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Metcalf v. Security International Insurance Co., 261 N.W.2d 795 (N.D. 1978).

Opinion

PAULSON, Justice.

This is an appeal by the plaintiff, Judith Metcalf, the Executrix of the Estate of Fred L. Metcalf, Deceased [hereinafter Judith] from the judgment of the Cass County District Court entered on April 18, 1977.

*797 The decedent, Fred L. Metcalf [hereinafter Metcalf] entered into a written employment contract with the defendant, Security International Insurance Company, a corporation [hereinafter Security] on November 29, 1963. Pursuant to this contract Metcalf was employed as a “sales management agent” to “manage and supervise the sale of insurance” issued by Security.

Metcalf and Security executed a written contract on December 22,1967, which modified the 1963 contract, and they executed another written contract on June 26, 1972, which modified the 1967 contract.

Metcalf died on June 8, 1974. Judith filed an action against Security on May 7, 1976, in the Cass County District Court requesting the court to construe the legal rights, obligations, and duties existing between Metcalf and Security pursuant to their contractual agreements, and to order Security to make all required payments according to the court’s interpretation of the contracts.

A trial was held on August 16, 1976, before the court without a jury. The 1963 and 1972 contracts were introduced and admitted into evidence. The 1967 contract was attached to Security’s answer but was never introduced or admitted into evidence. However, Judith and Security have stipulated on appeal, through counsel at oral argument, that the 1967 contract shall also constitute part of the appellate record. The relevant provisions of the 1963, 1967, and 1972 contracts are as follows:

THE 1963 CONTRACT

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“4. As compensation for his services described in the preceding paragraph, during the term of this contract, the Company shall pay the Employee a percentage of the premiums received by the Company on policies issued by the Company during the term of this contract, regardless of who has produced said business, as per the following schedule:

POLICY YEAR PER CENT OF PREMIUM ON INSURANCE SOLD BY SPECIAL PRODUCERS PER CENT OF PREMIUM ON INSURANCE SOLD BY GENERAL AGENTS AND AGENTS
1st year 4 ¾⅜% 4⅛%
2nd year and each year thereafter through the 10th year 1½% ⅜ of 1%
11th year and each year thereafter during the life of the policy 1% ⅜ of 1%
“In addition, Employee shall be paid an annual fee during the life of this contract as follows in part payment for his services:
1st year — $8,400.00
2nd year— 7,200.00
3rd year— 6,000.00
4th year— 4,800.00
5th year — and each year thereafter, Employee’s compensation shall be based only upon commissions in accordance with the schedule immediately here-inbefore set forth.
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“6. In the event that conditions and terms of Paragraph 5 above are met, then this contract shall be renewed automatically for another two-year period, and this contract shall be automatically renewed at the end of each succeeding two-year period on compliance with the quotas established in Paragraph 5 above, until the 21st day of May, 1983, on which date this contract shall expire in any event.
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*798 “9. The Company has executed identical contracts with three employees, Ardis G. Bunker, David B. Johnson and Fred L. Metcalf. In the event of death, disability or termination of employment by the Employee for any reason during the term of this contract, the terminated employee, or his estate if he is not living, shall receive the commission compensation provided for in Paragraph 4 on insurance in force at the date of such termination and, in addition, for a period of twenty (20) years from the date of such termination one-third of one (⅛ of 1%) per cent commission on collected premium income of the Company. . . . ”
THE 1967 CONTRACT
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“WHEREAS, EMPLOYEES desire more compensation than that provided in their Employment Contract dated November 29, 1963, because of their need to pass on a portion of their present compensation to insurance salesmen as an additional incentive.
“NOW THEREFORE, It is agreed that the COMPANY shall pay to each EMPLOYEE or ESTATE an additional one (1) per cent of all of the premium income received by the COMPANY since January 1, 1967. The COMPANY has the option of terminating this compensation on 2 year’s notice. In the event of such termination, the EMPLOYEE or ESTATE will continue to receive the one (1) per cent on all Insurance premiums on insurance sold up to the date of such termination, for so long as the premiums on the insurance that was sold during that period are paid to the COMPANY, but not on that insurance sold after such termination.
“In the event of death, disability or termination of employment by the Employee for any reason during the term of this contract, the terminated employee, or his estate if he is not living, shall receive the commission compensation provided for on insurance in force at the date of such termination. . .
THE 1972 CONTRACT
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“WHEREAS, the COMPANY and EMPLOYEES desire to modify that agreement dated December 22, 1967, between the parties hereto, and which also related to that Employment Contract, dated November 29, 1963.
“NOW, THEREFORE, it is agreed as follows:
1. Each EMPLOYEE shall continue to receive the 1 per cent on all premium income of the COMPANY on policies with a policy date prior to July 1, 1972.
2. On policies with a policy date on, and after July 1, 1972, 3 per cent of the premium income received by the COMPANY on all insurance and annuities sold by the three EMPLOYEES or their agents, shall be pro-rated among the three EMPLOYEES in direct proportion to the amount which the premium income produced by each EMPLOYEE, or his assigned agents, bears to the total premium income.
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4. In the event of death, disability or termination of employment by the EMPLOYEE for any reason during the term of this contract, the terminated EMPLOYEE, or his estate if he is not living, shall receive the commission compensation provided for on insurance sold prior to his death, disability or termination of employment.”

The trial judge issued his findings of fact, conclusions of law, and order for judgment in which he concluded that the 1972 contract modified and superseded the 1963 contract. In accordance with the trial judge’s interpretation of the contracts, judgment was entered on April 18, 1977, in which judgment the court ordered, in pertinent part, as follows:

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Bluebook (online)
261 N.W.2d 795, Counsel Stack Legal Research, https://law.counselstack.com/opinion/metcalf-v-security-international-insurance-co-nd-1978.