Minnesota Mutual Life Insurance Company v. Weeks

408 S.W.2d 128, 1966 Tex. App. LEXIS 3078
CourtCourt of Appeals of Texas
DecidedNovember 3, 1966
Docket14829
StatusPublished
Cited by4 cases

This text of 408 S.W.2d 128 (Minnesota Mutual Life Insurance Company v. Weeks) is published on Counsel Stack Legal Research, covering Court of Appeals of Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Minnesota Mutual Life Insurance Company v. Weeks, 408 S.W.2d 128, 1966 Tex. App. LEXIS 3078 (Tex. Ct. App. 1966).

Opinion

BELL, Chief Justice.

While we used the term “Appellees” in the style of the case, actually the only appel-lee is Richard H. Weeks individually. Suit was against him individually and in his assumed name of Richard H. Weeks and Associates. We will hereafter use the singular term “appellee”.

Suit was filed against appellee by American Capitol Insurance Company to recover the balance due under a lease dated Septem-her 1, 1962. The lease was for a three year term. Rental was paid through October, 1963. Suit was to recover rental provided in the lease for the balance of the term, less the amount that the lessor had obtained through rental from a subsequently obtained tenant.

Appellee in his answer pled he did not execute the lease individually and was not personally liable thereon. He pleads that in signing the lease he was acting as agent for appellant. He also filed a cross-action against appellant, alleging the lease sued on was executed for and on behalf of appellant, and prayed that if there was any recovery against him he recover against appellant.

American Capitol, after trial to the court without a jury, recovered judgment against appellee for unpaid rent in the amount of $2,180.00, together with $250.00 attorney’s fees. Appellee was given judgment over against appellant. No complaint is here made by appellee of the judgment against him in favor of American Capitol.

The trial court found that appellee and appellant on July 24, 1962, executed a “General Agent’s Contract” which was to be effective August 1, 1962. It also found that on August 1, 1962, appellee, acting as general agent for appellant, executed a lease commitment and that W. J. Hadlick, regional superintendent for appellant, was present at the execution of the lease commitment and authorized the act of appellee. It further found that the lease sued upon by American Capitol was executed by Richard H. Weeks by his signing “Richard H. Weeks and Associates by Richard H. Weeks, General Agent”. W. J. Hadlick was present at the execution of the lease and signed the same as a witness. It found Richard H. Weeks and Associates was a general agency exclusively for appellant. Appellant continued to occupy the leased premises after appellee terminated his relationship with appellant. Finally it was found that W. J. Hadlick advised appellee *130 it was customary for appellant to have its local agent take leases in his own name.

Appellee’s theory of recovery, as shown by his pleading, is that the lease sued on by the lessor was in fact executed by appellee as the authorized agent for appellant and he is entitled to be reimbursed for expenses incurred by him in performance of an obligation of his principal. On appeal, while he cites cases which hold that he is, under such circumstances, entitled to reimbursement, he also seems to rely on estoppel that would be available to a third party dealing with an agent who had no actual authority but who was clothed by the principal with apparent authority. We must decide the case on the theory on which it was pled and tried below and that is whether appellee executed the lease on behalf of appellant and if so whether he had authority to do so.

It is settled law that if an agent is authorized to perform an act for a principal and it is intended under the employment agreement that the agent will be reimbursed by the principal for expenses incurred by the agent in carrying out the duties of his employment, this principal must reimburse the agent. Oats v. Dublin National Bank, 127 Tex. 2, 90 S.W.2d 824 (Com.App.); John Maynard Lumber Co. v. Brazell, 28 S.W.2d 877 (CCA), writ dism.; Morgan v. Rose, 62 S.W.2d 1022 (CCA), writ dism.; Butler v. Continental Oil Co., 182 S.W.2d 843 (CCA), no writ hist.

Our problem is to determine whether the evidence will support the trial court’s findings that the lease that was signed by appellee was in fact signed by him on behalf of appellant and whether he had authority to sign such lease for appellant.

On July 24, 1962, appellant entered into a contract with Richard H. Weeks, who was there designated “General Agent”. The contract was to be effective August 1, 1962. The first section defined the scope of the agency. It provided that appellant appointed Weeks its “General Agent to procure, personally and through agents, applications for policies on the lives of persons satisfactory to the Company, and to collect premiums on such policies and remit same to the Company; all subject to the provisions hereof.”

Section One (c) provides for termination of the agency at any time upon thirty days’ written notice by either party.

Section Eight (a) provides: “The authority of the General Agent to act for the Company is expressly limited by the provisions of Section One (a), and no extension thereof shall be implied from any grant or denial of authority herein contained. * * ”

There is a provision in the contract for an office allowance reading as follows:

“During the continuance of your agency, but not for more than 24 full calendar months, the Company will make you a Monthly Office Allowance as specified below. This allowance is based upon the stated paid-business requirements as determined by Home Office records — Quota Club basis. It may be reduced or discontinued by the Company at any time * * * ”

There follows a schedule showing the amount of the office allowance based on the amount of paid-business. For instance, the allowance per month from August 1, 1962 to January 1, 1963, a five months’ period, would be $375.00, based on paid-business of $525,000.00. The monthly allowance from January 1 to July 31, 1963, would be $300.00 based on paid-business of $975,000.00. The monthly allowance from July 31, 1963 to January 1, 1964, was $225.00 based on $1,500.00 paid-business, and the monthly allowance to July 31, 1964 was $150.00.

There were various instruments introduced as exhibits, but they all, taken together, constitute the contract of employment. We only notice that they deal with a “supervisory allowance, persistency fees, new organization and quota allowances, and office allowance.”

*131 On September 1, 1962, the lease was executed. It was for a period of three years at a rental of $218.00 per month. The American Capitol Insurance Company is called “Lessor” and Richard H. Weeks and Associates are called “Lessee”. It is signed by the Lessor. Appellee signed the lease in this manner:

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Bluebook (online)
408 S.W.2d 128, 1966 Tex. App. LEXIS 3078, Counsel Stack Legal Research, https://law.counselstack.com/opinion/minnesota-mutual-life-insurance-company-v-weeks-texapp-1966.