Commercial Union Assur. Co., Inc. v. Southeastern Ventilating, Inc.
Decision Date | 08 September 1981 |
Docket Number | No. 62312,62312 |
Citation | 159 Ga.App. 443,283 S.E.2d 660 |
Parties | COMMERCIAL UNION ASSURANCE COMPANY, INC. v. SOUTHEASTERN VENTILATING, INC. |
Court | Georgia Court of Appeals |
John C. Parker, William E. Turnipseed, Atlanta, for appellant.
J. D. Humphries III, Atlanta, for appellee.
Walter C. Alford, Decatur, amicus curiae.
Commercial Union Insurance Co. appeals from the grant of partial summary judgment in favor of appellee.
In July 1974, Southeastern Ventilating, Inc., purchased a three-year multi-peril insurance policy and a one-year workers' compensation policy which were underwritten by appellant through the Britt Insurance Agency. The workers' compensation policy was renewed for one year in July of 1975, but it was not renewed after July of 1976. The Britt Agency was sold to the Vanguard Agency about the end of 1976. On January 4, 1977, the presidents of Britt and Vanguard met with the Georgia branch manager of Commercial Union to determine the amount owed by Britt to the insurance company on its accounts. After making inquiries to the company's processing center in Louisiana, the manager informed Britt that the amount owed was $3,282.55. Vanguard's president issued a check, which did not contain a restrictive endorsement of any kind, for the amount claimed to be due from Britt to Commercial Union. The insurance company then terminated its agency agreement with Britt and entered into a new agency contract with Vanguard.
In February of 1977, Commercial Union discovered that billing errors had been made on the workers' compensation and the multi-peril policies issued to Southeastern Ventilating. The insurance company notified Southeastern and demanded payment. After Southeastern refused to pay the additional premiums, the insurance company filed suit. Southeastern answered denying liability and filed a third-party complaint against Vanguard claiming it was formerly known as Britt and contending that a contractual relationship existed between it and Britt by which Britt collected the insurance premiums on the policies issued by Commercial Union and sought recovery against Britt for any judgment entered against it. Vanguard answered and asserted the defense of accord and satisfaction between itself and Commercial Union and counterclaimed against Southeastern for $4,332 on open account and filed a cross claim against Commercial Union alleging accord and satisfaction and seeking a judgment of $4,332 by right of subrogation on a direct loss caused by the insurance company's misrepresentation of accord and satisfaction. The trial court granted Southeastern a partial summary judgment as to amount owing Commercial Union prior to January 4, 1977, but allowed the plaintiff to recover any amount due after that date. Held :
The agency agreement with Britt provides:
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