Pammel v. Pacific Mutual Life Insurance Co. of California

121 N.W. 760, 157 Mich. 204, 1909 Mich. LEXIS 981
CourtMichigan Supreme Court
DecidedJune 7, 1909
DocketDocket No. 33
StatusPublished
Cited by1 cases

This text of 121 N.W. 760 (Pammel v. Pacific Mutual Life Insurance Co. of California) is published on Counsel Stack Legal Research, covering Michigan Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Pammel v. Pacific Mutual Life Insurance Co. of California, 121 N.W. 760, 157 Mich. 204, 1909 Mich. LEXIS 981 (Mich. 1909).

Opinion

Blair, C. J.

This is an action of assumpsit against defendant as the successor and assignee of the Conservative Life Insurance Company of California for commissions and salary claimed to be due—

“ Under and by virtue of a certain contract in writing entered into by and between the said plaintiff and Conservative Life Insurance Company of California, a corporation organized under the laws of the State of California, which contract is dated November 28, 1903, and is supplemented by letter dated November 25, 1903, signed by Wilbur S. Tupper, vice president of said Conservative Life Insurance Company.”

The contract, dated November 28, 1903, referred to in the declaration, was the usual agency contract for agents in the field soliciting applications for insurance. Although [205]*205dated November 28th, this contract was actually signed and transmitted to Mr. Lorenze, a managerial agent of defendant’s predecessor at Milwaukee, on December 24, 1903. Plaintiff first went to work for the Conservative under an oral arrangement with Mr. Jasper E. Brady,] its inspector of agencies.' This arrangement was not con- ’ firmed by the company. Mr. Brady also negotiated with Mr. W. B. Thomson and Mr. Abraham Lorenze, and the cornpany closed up these negotiations, and appointed Mr. Thomson inspector to look after business in the State of Wisconsin. Two contracts were made with Mr. Lorenze, which were produced at the trial. One was a general agency contract dated November 10, 1903, like plaintiff’s contract of November 28th above referred to. The other contract, known as a managerial contract, is also dated November 10, 1903, and reads as follows:

‘£ Dear Sir: The following is to be read in connection with, and forms a part of, your contract under even date herewith. The company appoints you as manager of its branch office, located at 126 Miller Building, Milwaukee. In consideration for your services in appointing, training and stimulating the field men to compose your branch, we will pay you the following consideration:
“1. A salary of one hundred dollars ($100.00) a month.
“ 2. A bonus based on the production of paid for business by yourself and the men of your branch for the first year, as follows:
“ ‘ $2.00 per thousand on a production of $500,000 or over.
$2.50 “ “ “ “ “ “ 600,000 “ “
$3.00 “ “ “ “ “ “ 700,000 “ “
“3. The company will pay for your accommodation the rent of its present offices, situated in the Miller Building, as above described, and from time to time, as business warrants, will furnish you such clerical help as is necessary for the handling of the business.
“ Very sincerely yours,
££ Wilbub S. Tuppeb, Vice President.
££ I herewith accept the above proposition and agree to all the terms thereof.
££A. Lokenze.”

[206]*206In a letter dated November 4, 1903, Mr. Brady notified plaintiff that he had “taken up the matter of the Wisconsin situation with Mr. Tupper, and you will doubtless hear from him at an early date.” On November 13,1903, Mr. Tupper’s secretary wrote for him to plaintiff a letter, containing, among other things, the following:

“Colonel Brady especially recommended three men from Milwaukee, of whom you were one. In making plans for the proposition which is to follow, Mr. Tupper was guided by a desire to utilize, if possible, all of the three men — Thomson, Lorenze and yourself. On account of his familiarity with the work already done in the State, he wished Mr. Thomson to travel through the State, writing new business and looking after the old business, keeping it in line, etc. This being disposed of, there remain yourself and- Mr. Lorenze. Mr. Lorenze expressed a decided preference to Colonel Brady to remaining in Milwaukee — would consider a proposition nowhere else. On the other hand you expressed a willingness and desire to come to the Coast. We therefore have offered Mr. Lorenze the managership of a Milwaukee office and we .wish you to come to the Coast on, or soon after, the first of the year. Meanwhile, we wish you would co-operate with Mr. Lorenze if he takes up the proposition, helping him to get matters into shape until January 1st. This will serve two purposes — enable Mr. Lorenze to get a plant started more quickly and familiarize yourself with policy plans and conditions. On or about January 1st we would like to have you come to the Coast, as before indicated. If you work meanwhile in Milwaukee and the matter of production warrants the same, we will contribute to your expenses of such removal one hundred dollars at the time of your coming; or if you should do little or nothing between this and the first of the year, which is improbable, we will still contribute one hundred dollars to your removal to the Coast, if within, say, two months of your arrival here your work justifies it.”

To this letter plaintiff replied under date of November 19th, as follows:

“Replying to yours of the 13th inst., beg leave to say that so far as assisting in getting the agency established at Milwaukee I would be very glad to do so, and, while per[207]*207'sonally I have a desire to come to the Coast, I think by that time I could prevail upon my wife to move. I would, however, suggest that I be permitted to remain in Milwaukee at least until February or March 1st, or thereabouts. No doubt Mr. Brady has laid before you the proposition he made me in full, which was based both upon salary and commission, and as I take it to assist in building up the agency and getting it established the company would be willing to pay both the salary and commissions as outlined by Mr. Brady in view of the services I believe I could render them, especially from the viewpoint of securing agents for the company aside from any personal business that I might be able to write. Of course, it is my desire, as I told Mr. Brady, to get in close touch with the agency department and finally, if found competent by the company, to work myself into the home office agency work directly for the company. I feel at this time as though with my personal acquaintance in the State and with the insurance fraternity in this section of the country, I could be of more aid to the company, as well as to the Milwaukee office, right here than I could in California where I have absolutely no acquaintance and where it might take a little while to build up a business. I prefer that in the meantime, and before coming to California, you should make such inquiries regarding my insurance ability, etc., to satisfy yourself as to my qualities for filling any position which you might desire to offer me for California. * * *
“ In reference to your policy forms, contracts, etc., will say that I am thoroughly familiar with them, having fully posted myself upon them as well as the methods of the company so far as I could. I am prepared to give full advice and instructions to agents or do any special work of this character that you might desire to outKne to me. As I understood Mr. Brady’s proposition when here, the State was to be subdivided into districts, and I believe that I could secure for you several good producing district agents in certain sections of this State where I have a large personal acquaintance. I will take this matter up with Mr.

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Cite This Page — Counsel Stack

Bluebook (online)
121 N.W. 760, 157 Mich. 204, 1909 Mich. LEXIS 981, Counsel Stack Legal Research, https://law.counselstack.com/opinion/pammel-v-pacific-mutual-life-insurance-co-of-california-mich-1909.