Sevier Ins. Agency, Inc. v. Willis Corroon Corp.

711 So. 2d 995, 1998 WL 57760
CourtSupreme Court of Alabama
DecidedFebruary 13, 1998
Docket1941634, 1941688
StatusPublished
Cited by18 cases

This text of 711 So. 2d 995 (Sevier Ins. Agency, Inc. v. Willis Corroon Corp.) 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
Sevier Ins. Agency, Inc. v. Willis Corroon Corp., 711 So. 2d 995, 1998 WL 57760 (Ala. 1998).

Opinion

711 So.2d 995 (1998)

SEVIER INSURANCE AGENCY, INC., et al.
v.
WILLIS CORROON CORPORATION OF BIRMINGHAM.
WILLIS CORROON CORPORATION OF BIRMINGHAM
v.
TURNER INSURANCE AND BONDING COMPANY, INC., et al.

1941634, 1941688.

Supreme Court of Alabama.

February 13, 1998.
Rehearing Denied March 20, 1998.

*996 Thomas T. Gallion III and Susan E. Kennedy of Haskell, Slaughter, Young, Johnston & Gallion, Montgomery, for Dale A. Taylor, Walker Frank Dean, and Sevier Ins. Agency, Inc., et al. (on original submission).

Lee H. Zell and Will Hill Tankersley, Jr., of Balch & Bingham, Birmingham; Susan S. Wagner of Berkowitz, Lefkovits, Isom & Kushner, Birmingham; and Charles B. Paterson of Robison & Belser, Montgomery, for Willis Corroon Corp. of Birmingham (on original submission).

Thomas T. Gallion III and Susan E. Kennedy of Haskell, Slaughter, Young & Gallion, L.L.C., Montgomery, for Dale A. Taylor, Sevier Insurance Agency, Inc., et al., and Walker Frank Dean (on application for rehearing).

Joseph B. Mays, Jr., and Rusha C. Smith of Bradley, Arant, Rose & White, L.L.P., Birmingham; and Charles B. Paterson of Robison & Belser, Montgomery (in case no. 1941688), for Willis Corroon Corp. of Birmingham (on application for rehearing).

James E. Williams of Melton, Espy, Williams & Hayes, P.C., Montgomery, for Turner Ins. & Bonding Co., Inc. (on original submission and on application for rehearing).

On Applications for Rehearing

PER CURIAM.

The opinion of January 17, 1997, is withdrawn, and the following opinion is substituted therefor.

These appeals involve separate cases brought by Willis Corroon Corporation of Birmingham ("Corroon") to enforce identical contractual provisions in employment contracts signed by Dale Taylor and Frank Dean, both of whom had previously worked for Collier Cobb & Associates, Inc. ("CCA"), as commercial insurance brokers. Their employment contracts with CCA included noncompetition agreements that give rise to one of the major issues in this case.

CCA merged with and/or was taken over by Corroon; subsequently, both Taylor and Dean were terminated by Corroon, and they *997 went to work for other insurance corporations. Taylor joined Sevier Insurance Agency, Inc. ("Sevier Insurance"), and Dean joined Turner Insurance and Bonding Company ("Turner Insurance").

Corroon, as the corporate successor to CCA, filed two actions. The first action was filed against Taylor and Sevier Insurance, Taylor's new employer, and was filed in Jefferson County. Corroon filed the second action against Dean and Turner Insurance, Dean's new employer, in Montgomery County. In both actions, Corroon alleged that the defendants had unlawfully interfered with Corroon's contractual and business relations, were guilty of a breach of contract, and that they violated the provisions of Ala.Code 1975, § 8-27-3, the "Alabama Trade Secrets Act." In the Jefferson County action, Taylor and Sevier Insurance both answered and, by counterclaim, alleged that Corroon had intentionally interfered with their business relations and had committed fraud. In the Montgomery County case, Turner Insurance answered and counterclaimed, alleging intentional interference with business relations; in addition, Dean answered and, in a counterclaim, alleged that Corroon had committed fraud against him and had intentionally interfered with his business relations.

In the Taylor Insurance action, our case number 1941634, the Jefferson County trial judge held that the contractual agreement was a "nonsolicitation provision" and, therefore, was valid and enforceable. The court, accordingly, granted declaratory relief in favor of Corroon, which in effect prohibited Taylor from violating the competition restrictions contained in the agreement. The trial court reserved its rulings on Taylor Insurance and Sevier's counterclaims alleging fraud and intentional interference with business relations, on the ground that those claims contained disputed issues of fact that should be submitted to a jury. The court made the declaratory relief final, pursuant to Rule 54(b), Ala. R. Civ. P. Taylor appealed. The issue in that case is whether the trial court properly entered the summary judgment in favor of Corroon.

In Dean's case, our case number 1941688, the Montgomery County trial judge granted Dean and Turner Insurance's motion for a summary judgment against Corroon's claims, holding that the contractual agreement was an invalid "covenant not to compete" and not a "nonsolicitation agreement." Consequently, the trial judge submitted the case to a jury on Turner Insurance's counterclaim alleging intentional interference with business relations and on Dean's counterclaim alleging fraud and intentional interference with business relations. The jury awarded Dean $600,000 on his counterclaim and awarded Turner Insurance $1,175,000 on its claim. The trial court entered a judgment on that verdict. Corroon appealed.

As is apparent from these facts, the Jefferson County Circuit Court and the Montgomery County Circuit Court reached different conclusions on the enforceability and the legal effect of the contractual agreement that Dean and Taylor had executed with CCA, which later merged with Corroon.

These appeals present three issues: 1) whether the contractual agreements between CCA and its former employees, Taylor and Dean, are enforceable under § 8-1-1, Ala. Code 1975; 2) whether Corroon, as a corporate successor to CCA, the corporation with which Dean and Taylor made the agreement, can enforce the agreement; and 3) whether there was sufficient evidence to submit Turner Insurance's intentional-interference-with-business-relations claim and Dean's intentional-interference-with-business-relations claim and his fraud claim to the jury.

I.

Were the employment agreements executed by Dean and Taylor enforceable under § 8-1-1? To answer that question, we must examine the agreements and determine their nature and legal effect.

Before beginning their employment with CCA, Taylor and Dean signed identical agreements, which provided in pertinent part as follows:

"WHEREAS, employee is desirous of entering into employment with the company in accordance with the terms and conditions as set forth below including a covenant not to compete and promise to keep certain information gained during employment *998 confidential upon termination of this Agreement.
"....
"3. Accounts of the Company. Employee expressly covenants and agrees that any and all business and accounts at any time or times procured by the Employee while employed hereunder are and shall be the permanent and exclusive property of the Company and for its exclusive benefit....
"4. Disclosure of Information; Solicitation of Accounts. Employee recognizes and acknowledges that the lists and names of the Company's policyholders and accounts are a valuable and unique asset of the Company and a trade secret belonging to it. In consideration of his employment and the payment of salary, the undersigned Employee agrees to the following:
"(a) Upon termination of employment hereunder for any reason whatsoever, Employee will not, for a period of two years from the date of termination of this Agreement ...

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

Related

Killough v. Monkress
N.D. Alabama, 2021
MONZON-GUEVARA v. McNeil
18 So. 3d 710 (District Court of Appeal of Florida, 2009)
White Sands Group, L.L.C. v. Prs II, L.L.C.
32 So. 3d 5 (Supreme Court of Alabama, 2009)
Carr v. International Refining & Manufacturing Co.
13 So. 3d 947 (Supreme Court of Alabama, 2009)
Thomas v. Williams
21 So. 3d 1234 (Court of Civil Appeals of Alabama, 2008)
Ex Parte Howell Engineering and Surveying, Inc.
981 So. 2d 413 (Supreme Court of Alabama, 2006)
CLARK SUBSTATIONS LLC v. Ware
838 So. 2d 360 (Supreme Court of Alabama, 2002)
Pitney Bowes, Inc. v. Berney Office Solutions
823 So. 2d 659 (Supreme Court of Alabama, 2001)
Katahdin Ins. Group v. Elwell
Maine Superior, 2001
Gardner v. State Farm Mut. Auto. Ins. Co.
822 So. 2d 1201 (Court of Civil Appeals of Alabama, 2001)
KW Plastics v. United States Can Co.
131 F. Supp. 2d 1265 (M.D. Alabama, 2001)

Cite This Page — Counsel Stack

Bluebook (online)
711 So. 2d 995, 1998 WL 57760, Counsel Stack Legal Research, https://law.counselstack.com/opinion/sevier-ins-agency-inc-v-willis-corroon-corp-ala-1998.