Wells v. United States Fidelity & Guaranty Co.

1938 OK 206, 77 P.2d 716, 182 Okla. 290, 1938 Okla. LEXIS 133
CourtSupreme Court of Oklahoma
DecidedMarch 22, 1938
DocketNo. 28035.
StatusPublished
Cited by1 cases

This text of 1938 OK 206 (Wells v. United States Fidelity & Guaranty Co.) is published on Counsel Stack Legal Research, covering Supreme Court of Oklahoma primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Wells v. United States Fidelity & Guaranty Co., 1938 OK 206, 77 P.2d 716, 182 Okla. 290, 1938 Okla. LEXIS 133 (Okla. 1938).

Opinion

BAYLESS, V. C. J.

Leo Sanders filed an action in the district court of Oklahoma county, and in the petition filed therein he alleged that through the efforts of O. A. Wells, an insurance broker, he procured United States Fidelity & Guaranty Company, a corporation engaged in the business of writing surety bonds, to execute for him a surety bond, and that he was indebted thereon for the premium in the sum of $23,399.47; that said company was entitled to a portion of said premium, and certain persons claiming to be brokers, or agents of the company, were entitled to portions thereof, the exact amount of which was unknown to him, and he could not pay said sum to any one except at his peril; and he tendered said money into court to abide the judgment of the court as to who was entitled thereto. He named as defendants the company, O. A. Wells, and Ancel Earp, transacting business as Ancel Earp & Company.

Wells filed an answer and cross-petition in which he alleged that as an independent broker of bonds he procured this business for United States Fidelity & Guaranty Company, and under an agreement and the usual custom of business with such com- *291 party, he was entitled to a broker’s commission of $4,679.89. The other defendants denied this.

United States Fidelity & Guaranty Company filed an answer and cross-petition in which it admitted executing such bond as surety for Sanders, but alleged that Wells was not its broker, or agent, and was not entitled to any portion of the premium, but, on the contrary, Ancel Earp & Company was entitled to the entire commission. It does not appear that Wells pleaded further to this.

Ancel Earp filed an answer and cross-petition in which he denied the allegations of agency on the part of Wells, and adopted all of the allegations of the answer and cross-petition of United States Fidelity & Guaranty Company.

The cause was tried to the trial judge, without a jury, and at the conclusion of the evidence the trial judge rendered judgment for United States Fidelity & Guaranty Company for the entire sum, with the finding that Earp was entitled to the entire commission, and that Wells was not entitled to any part of the commission. There was positive evidence in the record from which he could have found that either Wells or Earp was the moving, procuring cause. Each man had evidence to sustain his claim. Of this conflicting evidence, the trial court believed Earp’s. The costs of the action were taxed to Sanders, and he does not appeal. Wells appeals.

Wells divides his argument into two parts, and subdivides the second part. The first proposition is:

“The court committed error in casting the burden of proof on the plaintiff in error, who was one of the defendants and claimants in the cause below.”

When Sanders had completed his testimony touching upon his reason for seeking the assistance of the court in determining who was entitled to the money, there ensued argument as to who bore the burden of going forward with the proof. That argument is not set out in the record, but at its conclusion the trial judge said, in addressing attorneys for Wells:

“In view of the written contract in evidence here, and in view of the fact that your client, Mr. Wells, does not claim to be the agent of the United States Fidelity & Guaranty Company, I think the burden would be on you, to start with anyway.”

We believe Wells has misconceived the purpose of the ruling. We are of the opinion that the trial court merely ruled that the burden was upon Wells to first introduce evidence. Thereafter, all' other defendants introduced evidence. Upon all of the evidence the trial court determined who, in his opinion, was entitled to the commission. We do not believe his judgment can be construed to be that Wells failed to sustain the burden of proof in the first instance. We believe that he merely decided upon the order of the introduction of evidence, and when all of the evidence was in, treated Wells and Earp as standing upon egual footing as claimants, but decided that Earp had shown a better claim to the commission than had Wells. At this point we call attention to the fact that no one disputes that United States Fidelity & Guaranty Company was entitled to the net premium. Its net premium was the same irrespective of who divided the commission. In so far as this is concerned, it is admitted by Wells that he was entitled to only 20 per cent., and Earp to 5 per cent.

We now consider the second proposition, subdivision A, which reads:

“The court committed error in not rendering judgment for the plaintiff in error, Wells. (a) From the testimony of the various witnesses as shown in the abstract of record.”

For argument, Wells likens his functions in this matter, and his legal position, to that of a real estate broker. He argues that he was the moving or procuring cause. We agree with the analogy presented, but disagree as to the legal effect of his proof in the light of the trial court’s judgment. Wells and Sanders both testify that the first conversations relating to procuring a bond through United States Fidelity & Guaranty Company were between them. However, Wells was not an agent of United States Fidelity & Guaranty Company, and these conversations would not be binding upon it until their agreement was ratified. Wells and Sanders both testify that Wells inclined Sanders to accept a bond executed by United States Fidelity & Guaranty Company, but this likewise would not be binding upon United States Fidelity & Guaranty Company until it ratified said agreement. Wells testifies that he did bring this to its attention by taking the matter up with Mr. Williams, manager of United States Fidelity & Guaranty Company’s Oklahoma City office. He testified that he asked Williams if the company would write the business, *292 and procured a blank form of application from Williams for Sanders, and later made many helpful suggestions and furnished Williams an informal statement of Sanders’ financial status. Williams denies his testimony in this respect. He testified positively that the first he knew of Wells in this deal was a statement made to him by Earp when Earp returned from Baltimore, where he had been seeking the company’s consent. to execute the bond. This statement was that Sanders had solicited Earp to take care of Wells out of the commission, and that Earp had agreed to pay him $250. Wells places stress upon the fact that the application upon which the bond was actually issued is the application prepared for Sanders by him. He testified that he got this blank from Williams’ office, but does not say that he told them who the particular blank was for. Further, when he had prepared the application and Sanders had signed it, Sanders put it in his desk drawer, and no one connected with the transaction saw it again or paid any attention to it until the delivery of the executed bond. It is clear that the written application for the bond and the executed bond were delivered simultaneously. Sanders explained this thus: Among the questions he was required to answer was whether he had applied for a bond for this contract and had been refused. If he answered the question in the affirmative, it lessened his chances of getting another company to execute a bond for him.

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Bluebook (online)
1938 OK 206, 77 P.2d 716, 182 Okla. 290, 1938 Okla. LEXIS 133, Counsel Stack Legal Research, https://law.counselstack.com/opinion/wells-v-united-states-fidelity-guaranty-co-okla-1938.