Stein v. National Life Ass'n

46 L.R.A. 150, 32 S.E. 615, 105 Ga. 821, 1899 Ga. LEXIS 777
CourtSupreme Court of Georgia
DecidedMarch 4, 1899
StatusPublished
Cited by22 cases

This text of 46 L.R.A. 150 (Stein v. National Life Ass'n) is published on Counsel Stack Legal Research, covering Supreme Court of Georgia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Stein v. National Life Ass'n, 46 L.R.A. 150, 32 S.E. 615, 105 Ga. 821, 1899 Ga. LEXIS 777 (Ga. 1899).

Opinion

Fish, J.

Simon Stein entered into an agreement with the National Life Association of Hartford, Conn., whereby he became its general or managing agent in and for the States of Georgia and Alabama, for the purpose of procuring applications for membership in the association, delivering policies issued upon applications so effected, and collecting the first payments "thereon. Under the agreement, by which the managing agent’s authority was expressly limited, Stein was to solicit and procure the applications of persons to become members of the association, procure the appointment of soliciting agents in his territory who should have no claim against the association for commissions or otherwise by reason of their appointment, forward all applications to the home office of the association for approval ■or rejection, receive and deliver policies, and receive the first payment of the premium. The agreement provided certain commissions and charges to be allowed Stein, and specified that .all moneys received and collected for the association by Stein [822]*822and his subagents and employees should be “ a fiduciary trust to be promptly accounted for, reported and paid over to the association in cash, less the commissions and charges specifically authorized. On the first of each month Stein was to make a full report of the business done, and remit to the association the amount due it. He was to abide by the rules, regulations,, and instructions of the association with reference to the conduct of its business, and to account for, return and deliver to the association all moneys, policies, receipts, or other property or effects of the association coming into his hands by reason of his. appointment as general agent. It was agreed that if Stein should, after one year from the date of the contract, neglect or refuse to promptly and thoroughly work his territory, then the association might “at their option, by giving thirty days notice to-[Stein], employ other agents in any other portion of said territory so neglected, without otherwise affecting this contract,” and Stein should have no claim on the business effected by the agents-so employed; “otherwise,” the association was not to appoint other agents in Stein’s territory. There was a provision for the termination of the contract by either party in case of the inability of Stein to fulfill its conditions, and for a certain disposition of the “renewals.” It was further provided that all of Stein’s interests, except renewals, might be terminated by mutual consent, evidenced by thirty days written notice of each party to the other, or by the association for misconduct, neglect of duty, failure to fulfill any of his agreements, or violation of' any of the conditions of the contract by Stein. Further, Stein was given the privilege “of writing colored risks in all parts of the South where the same does not come in open conflict with other agents,” and his commissions on such business were to be the same as though written in his own territory. The agreement was executed July 12, 1895, and was to “terminate by limitation fifteen years from July 5th, 1890,” when Stein’s interest should entirely cease except as to renewals.

In August, 1898, the National Life Association filed a petition in the superior court, against Stein, to which was attached a copy of the contract above mentioned. This petition alleged that Stein had, under the contract, been appointed general or [823]*823managing agent for the association for Georgia and Alabama, with headquarters in Atlanta; that his duties were of a nature vital to the association; that, so far from complying with the contract, he had totally neglected his duties as agent and violated his contract, to the incalculable and irremediable damage of the association, and, unless restrained from further representing the association, would continue to injure and damage it; that books of original entry were necessary to the business, but that Stein pretended that he kept no such books and refused to show petitioner such memoranda as he had kept; that an agent of the association, regularly accredited and with plenary authority, attempted persistently to obtain from Stein information as to the business, but Stein as persistently refused to give it; that Stein likewise declined to give such information to the association’s attorneys; that Stein attempted to damage the business of the association and prevent policy-holders from paying their premiums, intending to force the association to buy him out; that he declined to make report for the last month or two, and made conflicting statements as to the amount due; that Stein was due a large sum; that he was a man of small means with his property encumbered, and that there would be no moans at law of estimating the damages which would accrue if Stein were allowed to continue to interfere with and damage the business of the association. It prayed for injunction, receiver, accounting, and general relief, but waived discovery.

Stein in his answer alleged that he had never abandoned the contract until long after the petitioner had done so and had committed breaches of it which made it impossible for him to continue as its agent under the contract. He claimed that the association had violated its contracts with its policy-holders and admitted in letters to such policy-holders that it had done so. He attached to his answer a copy of the statement of the insurance commissioner of Connecticut, the State of the association’s incorporation, showing that the officers of the association had attempted to mislead and deceive the insurance department and the general public by the suppression of death claims, reporting as payments to beneficiaries payments to other people, entering lapsed insurance, and i-n other ways; that it was their [824]*824policy to use improper means to induce beneficiaries to accept less than was due them; that the administration expenses amounted to 72 per cent, of the actual payments to death claim beneficiaries. Stein alleged that the association, by letters to the policy-holders, undertook to avoid certain portions of their policies, and that, by reason of this breach, it became impossible longer to successfully proceed with the business. He de- . nied that there were any books of original entry at his or any other general agency. All the entries were made at the home office from data furnished by the agents, and the agents had never been required to keep books. It was impossible, if not criminal, for defendant to have solicited any new .business for the association, after the association had in many ways violated its contract. He had repeatedly pledged his personal credit for the solvency of the association and deemed it his duty to write to the policy-holders of its insolvent condition. He reported every month on the proper date until the first of August, 1898. The association sent letters to policy-holders stating that defendant was no longer in its employ, and defendant, construing this as an additional breach of the contract, wrote the association that he could no longer abide by the contract, and demanded a final statement of account. He had received no answer. The amount paid the attorneys for the association was the balance due by him to the association. Defendant had no objections to being enjoined from acting as agent of the association, or to the appointment of a receiver. He denied indebtedness except on certain notes not due. He resisted the prayer that he be restrained from “ in any manner influencing its policy-holders against said petitioner.”

The case was tried upon the petition and answer and an affidavit signed by certain policy-holders.

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Bluebook (online)
46 L.R.A. 150, 32 S.E. 615, 105 Ga. 821, 1899 Ga. LEXIS 777, Counsel Stack Legal Research, https://law.counselstack.com/opinion/stein-v-national-life-assn-ga-1899.