WOODMEN OF WORLD LIFE v. Walker

510 N.W.2d 439
CourtNebraska Court of Appeals
DecidedJune 15, 1993
DocketA-92-351
StatusPublished

This text of 510 N.W.2d 439 (WOODMEN OF WORLD LIFE v. Walker) is published on Counsel Stack Legal Research, covering Nebraska Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
WOODMEN OF WORLD LIFE v. Walker, 510 N.W.2d 439 (Neb. Ct. App. 1993).

Opinion

510 N.W.2d 439 (1993)

WOODMEN OF THE WORLD LIFE INSURANCE SOCIETY, Appellant,
v.
Huston D. WALKER, Appellee.

No. A-92-351.

Court of Appeals of Nebraska.

June 15, 1993.

*440 Kirk S. Blecha and Carol C. Knoepfler, Baird, Holm, McEachen, Pedersen, Hamann & Strasheim, Omaha, for appellant.

William T. Ginsburg, Zuber & Ginsburg, Omaha, for appellee.

CONNOLLY, HANNON, and MILLER-LERMAN, JJ.

*441 CONNOLLY, Judge.

This appeal arises from an action filed in Douglas County District Court by the appellant, Woodmen of the World Life Insurance Society (Woodmen), for declaratory judgment on a contract between Woodmen and the appellee, Huston D. Walker, an Alabama resident. In addition to declaratory judgment concerning certain conditions in the contract, Woodmen sought restitution of commissions it had paid to Walker pursuant to the contract. After answering Woodmen's petition, Walker filed a motion to dismiss pursuant to Neb.Rev.Stat. § 25-538 (Reissue 1989), which authorizes a court with otherwise proper jurisdiction to dismiss an action "[w]hen the court finds that in the interest of substantial justice the action should be heard in another forum." The trial court granted Walker's motion and dismissed the case. Woodmen appeals. We reverse and remand.

I. FACTS

Woodmen is a fraternal benefit society incorporated in Nebraska, with headquarters and central offices in Omaha, and is licensed to do business in all 50 states. It is a nonprofit corporation that possesses no capital stock and exists for the mutual benefit of its members and their beneficiaries.

Beginning in January 1986, Walker, a resident of Henagar, Alabama, entered into a series of contracts with Woodmen. Working as an independent contractor, Walker agreed to be a full-time field representative for Woodmen in northern Alabama. Walker was responsible for increasing membership and advancing Woodmen's interests by soliciting applications for benefit certificates and maintaining relationships with current certificate holders. Over the course of his employment with Woodmen, Walker attended four training seminars at corporate headquarters in Omaha, with all expenses paid by Woodmen.

On or about July 1, 1986, Woodmen and Walker entered into a "Full-Time Field Representative Contract." Woodmen's state and regional managers signed off on the July 1 contract, but the contract did not become effective until it had been forwarded to headquarters in Omaha and had been reviewed, approved, and signed by Woodmen personnel in Omaha. Woodmen retained the original July 1 contract in Walker's personnel file in Omaha. All commission payments and other payments to Walker pursuant to the contract were paid from Woodmen's Omaha offices. All accounting functions pertaining to Walker's commissions were also handled in Omaha. All applications in northern Alabama for insurance products and benefit certificates were sent by Walker either by mail or by computer transmission to Woodmen's Omaha offices for processing. All insurance products and benefit certificates were issued by Woodmen from its Omaha offices. Any policy renewals or changes initiated by Walker on behalf of Woodmen members were made by Woodmen in its Omaha offices. In the event Walker had any questions or needed information regarding the cash or loan value of Woodmen policies or the amount of premiums, Walker normally would have obtained that information from Woodmen's Omaha offices. As a field representative, Walker had a special telephone number which allowed him access to a data communications line in Omaha from which he could obtain information on Woodmen members.

Under the July 1 contract, Walker earned commissions, service fees, bonuses, and possibly management fees if he sold Woodmen's insurance products. However, the contract stated that Walker would forfeit his right to all compensation if, while the contract was in force or within 1 year following its termination, he (1) induced or attempted to induce any Woodmen member or policyholder to terminate a Woodmen certificate or annuity or (2) sold or attempted to sell to an existing Woodmen member or policyholder an insurance product offered by another insurer. The contract also stated that it was to be construed according to the laws of Nebraska and that Douglas County, Nebraska, would be the exclusive venue for any legal action arising out of the contract.

On or about May 31, 1991, Walker was terminated by Woodmen. On August 29, 1991, Woodmen filed a petition in the district court for Douglas County, Nebraska, seeking, in part, a declaratory judgment that Walker had violated the July 1 contract because, within 1 year of his termination, he *442 had induced or attempted to induce Woodmen members to terminate Woodmen certificates or annuities, and he had sold or had attempted to sell to Woodmen members or policyholders insurance products offered by a competing insurance company. Woodmen also sought restitution from Walker for commissions paid to him by Woodmen before it was aware of Walker's alleged breach of the noncompetition provisions in the July 1 contract. Woodmen claimed that by breaching the contract, Walker had forfeited his right to the commissions at issue.

Walker filed an answer denying the allegations. After Woodmen filed a reply, Walker filed a motion to dismiss pursuant to § 25-538, which authorizes a court with otherwise proper jurisdiction to dismiss an action "[w]hen the court finds that in the interest of substantial justice the action should be heard in another forum." The trial court found that it had jurisdiction over Walker under Neb.Rev.Stat. § 25-536 (Reissue 1989), Nebraska's long-arm statute, but that Walker would be hindered in making his defense because he would be unable to subpoena witnesses in Alabama to appear in Nebraska. The court determined that the action should be heard in the forum of Walker's residence or in the forum where the alleged breach of contract occurred. Therefore, pursuant to § 25-538, the court granted Walker's motion and dismissed the case.

II. ASSIGNMENT OF ERROR

We condense Woodmen's assignments of error into the following: The trial court erred in finding that in the interest of substantial justice, the action could not be heard in the district court for Douglas County, Nebraska.

III. STANDARD OF REVIEW

When a jurisdictional question does not involve a factual dispute, determination of the jurisdictional issue is a matter of law, which requires an appellate court to reach a conclusion independent from the trial court's conclusion on the jurisdictional issue. See 24th and Dodge Ltd. v. Commercial Nat. Bank, 243 Neb. 98, 497 N.W.2d 386 (1993).

Whether a suit should be entertained or dismissed under the rule of forum non conveniens depends largely upon the facts of the particular case and rests in the discretion of the trial court. See Qualley v. Chrysler Credit Corp., 191 Neb. 787, 217 N.W.2d 914 (1974). Therefore, absent an abuse of discretion, we will affirm the decision of the district court to dismiss Woodmen's petition.

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