Texas Reserve Life Insurance Co. v. Allen

415 S.W.2d 484, 1967 Tex. App. LEXIS 2004
CourtCourt of Appeals of Texas
DecidedMay 4, 1967
DocketNo. 283
StatusPublished
Cited by2 cases

This text of 415 S.W.2d 484 (Texas Reserve Life Insurance Co. v. Allen) 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
Texas Reserve Life Insurance Co. v. Allen, 415 S.W.2d 484, 1967 Tex. App. LEXIS 2004 (Tex. Ct. App. 1967).

Opinion

DUNAGAN, Chief Justice.

This is an appeal from a suit instituted by Alton Allen, appellee, against the Texas Reserve Life Insurance Company, appellant, for recovery of $5,600.00 alleged by ap-pellee to be a debt arising from an agreement wherein Alton Allen was employed by Texas Reserve Life Insurance Company as an insurance agent and manager of agents. In plaintiff’s original petition, Alton Allen alleged that the Texas Reserve Life Insurance Company owed him a monthly salary of $800.00 for a seven-month period beginning June 1, 1964, and ending December 31, 1964, by virtue of a contract introduced in evidence as Plaintiff’s Exhibit 1 (P-1) which provided a salary adjunct to the commission income of Alton Allen for services as managing agent. The contract herein sued upon will hereafter be referred to as “P-1.”

Texas Reserve Life Insurance Company denied any such indebtedness, alleging that Alton Allen’s discharge was justified because of his failure to perform substantially his duties and obligations for which he was employed. In addition, the appellant alleged that no damage was shown by Alton Allen to have resulted as a consequence of his discharge from its employment.

This case was tried before a jury and pursuant to the jury’s findings, judgment was entered for the plaintiff in the amount of $4,655.00. From this judgment, appellant has duly perfected its appeal to this court.

Appellant by its Points of Error 1 and 2 contends that:

(1) “The Trial Court erred in refusing to submit Defendant’s Special Issue No. 8a, wherein it was inquired if Alton Allen failed to substantially perform his employment agreement, prior to his discharge.”
(2) “The Trial Court erred in limiting Special Issue No. 8, wherein it is inquired if Alton Allen failed to substantially perform the duties imposed upon him by his employment agreement, to the part of the employment agreement marked ‘P-1.’ ”

It seems that the basic difference between the parties is as to the law applicable to an agreement which is evidenced by three separate written instruments. These in-truments are “P-1,” an agent’s contract, and a manager’s contract, all of which were signed by appellee, Alton Allen, and by an authorized representative of the appellant. The written instrument designated as “P-1” is dated January 3, 1963; the agent’s contract was executed on January 17, 1964, but is shown to have been effective on January 4, 1964; and the manager’s contract being a supplementary agreement between the parties is dated January 4, 1964. The undisputed evidence shows that “P-1” was actually written on January 3, 1964, rather than January 3, 1963, as shown on the instrument.

Appellee is seeking to recover only under the instrument (P-1) executed January 3, 1964, alleging that appellant breached this contract by its letter to appellee dated May 1, 1964, notifying him of the termination of his agent’s and manager’s contracts as of May 30, 1964. The appellee has not made the agent’s and manager’s contracts any part of his suit against the appellant. He is not basing his suit in whole or part upon the agent’s and manager’s contracts. It is appellee’s position that he is entitled to recover the salary stipulated in P-1, disregarding the agreements of [486]*486the parties contained in the agent’s and manager’s contracts.

The appellant urged throughout the trial in the court below and so urges in this court that the instrument executed January 3, 1964, (P-1), was merely an adjunct to the standard form of employment agreement into which the parties entered, and therefore inadequate by itself as the basis for appellee’s cause of action. The instrument executed on January 3, 1964, (P-1), reads as follows:

“TEXAS RESERVE LIFE INSURANCE COMPANY
“P. O. Box 269,
“San Antonio 6, Texas
“January 3, 1963
“Texas Reserve Life Insurance Company of San Antonio, Texas has agreed to pay Alton Allen of Tyler, Texas the sum of $800.00 a month salary for at least 12 months. This amount shall not be charged to his account. He will also draw his commissions and override on all agents and brokers.
“The Company also agrees to let him keep brokerage contracts with Old National and Continental Life of Houston, Texas, for purpose of servicing present policyholders. We also agree to let him keep his office at 110 Beckam Terrace Building.
“Mr. Alton Allen will agree to write at least $20,000, annualized premium per year. He also agrees to pay office rent, secretary, box rent, telephone, answering service & stamps.
“/s/ Alton Allen
Alton Allen
“/s/ J. Henry Von Pein
J. Henry Von Pein, Vice President
Director of Agencies
“/s/ L. E. Rawlins,
L. E. Rawlins, Superintendent of Agencies”

If the agent’s and manager’s contracts with the contract herein sued upon (P-1) are each a part of the entire transaction and constitute but a single contract as if embodied in one instrument, then the agent’s and manager’s contracts of employment should also be considered in determining whether the appellee failed to substantially perform the duties imposed upon him by his employment agreement.

Special Issue No. 8 as submitted by the court and the jury’s answers thereto reads:

“SPECIAL ISSUE NO. 8
“Do you find from a preponderance of the evidence that Alton Allen, prior to his discharge by Texas Reserve, failed to substantially perform the duties imposed upon him by his employment agreement marked P-1?
“Answer ‘He failed to substantially perform’ or
‘He did not fail to substantially perform’
“ANSWER: He did not fail to substantially perform
“You are instructed by the Court that the term ‘substantially perform’ as used in this charge, is meant that performance of the employee of his obligation in the scope of his employment as a man of ordinary prudence in an industry would have done under the same or similar circumstances; you are further instructed that the term ‘substantially perform’, as used in this charge, does not mean an exact performance in every slight or unimportant detail, but means full performance in all of the essential elements necessary to the accomplishment of the entire purpose of the employment contract.”

Appellant’s Requested Issue 8-a, which was refused by the court, reads :

“Do you find from a preponderance of the evidence that Alton Allen, prior to his discharge by Texas Reserve, failed to sub[487]*487stantially perform the duties imposed upon him by his employment agreement?

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Bluebook (online)
415 S.W.2d 484, 1967 Tex. App. LEXIS 2004, Counsel Stack Legal Research, https://law.counselstack.com/opinion/texas-reserve-life-insurance-co-v-allen-texapp-1967.