Nicholson v. Jackson Life Insurance Company

226 So. 2d 661, 284 Ala. 604, 1969 Ala. LEXIS 1148
CourtSupreme Court of Alabama
DecidedSeptember 18, 1969
Docket8 Div. 316
StatusPublished

This text of 226 So. 2d 661 (Nicholson v. Jackson Life Insurance Company) is published on Counsel Stack Legal Research, covering Supreme Court of Alabama primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Nicholson v. Jackson Life Insurance Company, 226 So. 2d 661, 284 Ala. 604, 1969 Ala. LEXIS 1148 (Ala. 1969).

Opinion

PER CURIAM.

This appeal is to review a judgment of the Circuit Court of Madison County in the sum of $1,468.32 in favor of appellee and against appellant. The appeal is to the Court of Appeals of Alabama, but docketed in this court, which has jurisdiction. Title 13, §§ 86 and 96, Code 1940. A redocketing in the Court of Appeals and transfer to this court would be unnecessary procedure. We will retain jurisdiction.

The complaint has three counts which were submitted to the jury. Each count claims the sum of $1,468.32. Count Four as amended is on account, while the other two counts assert breach of a covenant in a general agent’s contract and a general agent’s financing agreement for advances by the appellee to appellant, after crediting commissions on the sale of life insurance. Both latter counts are essentially the same, but one is more in detail than the other.

The parties pleaded in short by consent the general issue, with leave to give in evidence any matter which if well pleaded would be admissible in defense of the action, to have effect if so pleaded; and with leave of the plaintiff to give in evidence any matter which, if well pleaded, would be admissible in reply to such defensive matter, to have effect if so pleaded. For the effect of pleas in short see Alabama Clay Products Co. v. Mathews, 220 Ala. 549, 126 So. 869; Johnston v. Isley, 240 Ala. 217, 198 So. 348; Emergency Aid Insurance Co. v. Dobbs, 263 Ala. 594, 83 So.2d 335; Ala.Dig., Vol. 16, Pleading, ®=> 383.

The trial court, at the conclusion of the trial, gave an affirmative charge with hypothesis in favor of the appellee. After the jury had deliberated for some time without reaching a verdict, the court recalled them, withdrew all prior charges, and gave a general affirmative charge without hypothesis (a directed verdict) for the appellee for the amount sued for. The jury responded to the direction- of the court and returned a verdict for the appellee in the sum of $1,468.32, which is the amount claimed in each count.

It appears from the evidence that appellee and appellant entered into a written agreement on January 15, 1964, whereby appellant was to become the general agent of appellee in the sale of life insurance and kindred coverage. Appellee, pursuant to the terms of the contract, terminated the agreement on January 15, 1965. Incorporated in the agreement was Paragraph F, which reads as follows:

“Upon the termination of this contract, the General Agent agrees to pay the Company the amount by which all advances from the Company to the General Agent or other indebtedness exceeds the earned commissions which have been applied against such advances.”

Attached to and made a part of the aforementioned agency contract was an agreement whereby appellee agreed “to advance the General Agent the sum of $400.00 per month for a period of twelve months, provided the General Agent shall have produced, issued, and paid for life insurance business, the annual premiums for which (regardless of the mode of payment) amount to not less than $_ [606]*606for the second month following the first advance and $- for the months thereafter * * Thereafter follows a schedule that sets forth the amount of annual premiums required to provide an advance of $100 per month. Proportionate adjustments were provided to be made for advance of larger or smaller amounts.

It was also provided that:

“The termination of the General Agent’s contract of which this agreement forms a part shall automatically terminate this agreement, and in any event, this agreement shall terminate at the expiration of twelve months from the date of the first advance.”

Then follows:

“Upon termination of this financing agreement, • for any reason, whether with or without cause, the General Agent agrees to pay to the Company the amount of all advances which it has made on behalf of the General Agent, including, but not limited to, the amount by which the advances made by the Company to the General Agent under the terms of this agreement exceeds the earned commissions which have been applied against such advances.”

As we understand appellant’s argument, the omissions in the financing agreement as to the amount of premiums that the appellant shall have produced made the contract ambiguous, and that clarifying evidence as to conversations between the parties was admissible to clear up this ambiguity and thus determine what the parties had in mind or agreed to with respect to the contract, citing Olsson v. Nelson, 248 Ala. 441, 28 So.2d 186; Weir v. Long, 145 Ala. 328, 39 So. 974; Bishop on Contracts, § 370. This argument addresses itself to Assignments of Error 5, 6, 7, 11, 12 and 13, wherein the trial court refused to allow parol evidence to be introduced to show the circumstances under which the contracts were made, the relation of the parties, and what was within their mutual knowledge.

It is also appellant’s contention that appellee breached the contracts of employment when it stopped paying the advances to appellant, as agreed by the contract. This contention is pointed to by Assignments of Error 8, 9, 14 and 15, citing Beck v. West et al., 87 Ala. 213, 6 So. 70.

It appears from the evidence without dispute that appellee advanced appellant the total sum of $1,800, with the last advance of $200 being made on May 28, 1964. Appellee then cut off further cash advances. As we view appellant’s brief and argument, it is appellant’s contention that the advances should have continued under the contract until January 15, 1965, and that appellee breached this agreement. This, appellant at the trial undertook to show as a defense to the suit for collection of the advances and other indebtedness after proper credits.

If we may assume, without deciding, that the evidence with respect to conversations between the parties might have been sufficient to show a breach and that appellant was entitled under the contract to advances in cash until’January 15, 1965, when the contract terminated, we think that under the pleadings such continuation of advances was irrelevant and immaterial to the right of appellee to recover the amount sued for.

There was no insistence by appellant that he was entitled to damages incident to the failure of appellee to continue the advances until January 15, 1965. Beck v. West, supra.

The failure of appellee to continue the advances until January 15, 1965, if so obligated by the contract as appellant contends, would not preclude appellee from recovering judgment for such advances and other indebtednesá, less credits and damages to appellant by way of setoff or recoupment if available under the plea in short. Paragraph F, supra, and the financing agreement which we have quoted, supra, so provide. BeCk v. West, supra. [607]*607There is no forfeiture provision in the contract incident to a breach thereof by appellee that militates against appellee’s right to recover for advances and other indebtedness, less proper credits.

Contrary to appellant’s contention, we think the trial court did not err in directing a verdict for appellee. We observed in White v. State ex rel. Fowler, 262 Ala. 694, 698, 81 So.2d 267, that general rules are well established in this jurisdiction. We approved the following statement:

Free access — add to your briefcase to read the full text and ask questions with AI

Related

White v. State Ex Rel. Fowler
81 So. 2d 267 (Supreme Court of Alabama, 1955)
Emergency Aid Insurance Co. v. Dobbs
83 So. 2d 335 (Supreme Court of Alabama, 1955)
Olsson v. Nelson
28 So. 2d 186 (Supreme Court of Alabama, 1946)
Reed v. Ridout's Ambulance, Inc.
102 So. 906 (Supreme Court of Alabama, 1925)
Alabama Clay Products Co. v. Mathews
126 So. 869 (Supreme Court of Alabama, 1930)
Brown v. Mobile Electric Co.
91 So. 802 (Supreme Court of Alabama, 1921)
Dorough v. Alabama Power Co.
76 So. 963 (Supreme Court of Alabama, 1917)
Johnston v. Isley
198 So. 348 (Supreme Court of Alabama, 1940)
Harris v. State Ex Rel. Wilson
109 So. 291 (Supreme Court of Alabama, 1926)
Beck v. West & Co.
87 Ala. 213 (Supreme Court of Alabama, 1888)
Weir v. Long
39 So. 974 (Supreme Court of Alabama, 1906)
Shipp v. Shelton
69 So. 102 (Supreme Court of Alabama, 1915)

Cite This Page — Counsel Stack

Bluebook (online)
226 So. 2d 661, 284 Ala. 604, 1969 Ala. LEXIS 1148, Counsel Stack Legal Research, https://law.counselstack.com/opinion/nicholson-v-jackson-life-insurance-company-ala-1969.