Commercial Union Assur. Co., Inc. v. Southeastern Ventilating, Inc.

Decision Date08 September 1981
Docket NumberNo. 62312,62312
Citation159 Ga.App. 443,283 S.E.2d 660
PartiesCOMMERCIAL UNION ASSURANCE COMPANY, INC. v. SOUTHEASTERN VENTILATING, INC.
CourtGeorgia 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.

DEEN, Presiding Judge.

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:

"(2) The agent is hereby given full power and authority to collect, receive and receipt for premiums on insurance contracts (including bonds) tendered by Agent to and accepted by Company and to retain out of premiums so collected, as full compensation on business so placed with Company, commissions as agreed...

"(3) In the event of termination of this agreement, Agent having promptly accounted for and paid over all premiums for which he may be liable, Agent's records, use and control of expirations shall remain the property of Agent and be left in his undisputed possession; otherwise, the records, use and control of expirations shall be vested exclusively in Company... It is a condition of this Agreement that Agent shall refund ratably to Company on business heretofore or hereafter written, commissions on cancelled liability and on reductions in premiums at the same rate at which such commissions were originally retained regardless of whether such transactions take place during the term of this Agreement or after its termination.

"(4) Accounts of the business placed by Agent with Company shall be rendered monthly so as to reach Atlanta office not later than the 10th day of the following month: The balance shown to be due Company or Agent shall be paid not later than 60 days after the end of the month for which the account is rendered...

"(10) Company will relieve Agent from responsibility for payment, due to inability to collect (a)...

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8 cases
  • Wallace v. Harrison
    • United States
    • Georgia Court of Appeals
    • April 20, 1983
    ...it is to be valid and binding. Richardson v. Richardson, 237 Ga. 830, 229 S.E.2d 641 (1976); Commercial Union Assurance Co. v. Southeastern Ventilating, Inc., 159 Ga.App. 443, 283 S.E.2d 660 (1981); M.W. Buttrill, Inc. v. Air Conditioning Contractors, 158 Ga.App. 122, 279 S.E.2d 296 (1981);......
  • Carpet Transport, Inc. v. TMS Ins. Agency, Inc.
    • United States
    • Georgia Court of Appeals
    • March 10, 1983
    ...for the jury to decide. Greenway v. Cheatwood, 160 Ga.App. 143, 144(1), 286 S.E.2d 471; Commercial Union Assurance Co. v. Southeastern Ventilating, 159 Ga.App. 443, 445-446, 283 S.E.2d 660; Woodstock Rd. Investment Properties v. Lacy, 149 Ga.App. 593, 594(1), 254 S.E.2d 910; Prater v. Ameri......
  • Hadson Gas Systems, Inc. v. Atlanta Airlines Terminal Corp., A91A0537
    • United States
    • Georgia Court of Appeals
    • June 27, 1991
    ...to cover, i.e., itemization of deductions from the balance alleged to be due. [Cit.]" Commercial, etc., Co. v. Southeastern, etc., Inc., 159 Ga.App. 443, 445-446(11), 283 S.E.2d 660 (1981). Accord Mobley v. Fulton Roofing Co., 173 Ga.App. 563, 564, 327 S.E.2d 540 (1985). In the case sub jud......
  • Mobley v. Fulton Roofing Co.
    • United States
    • Georgia Court of Appeals
    • February 27, 1985
    ...As a general rule, whether there is an accord and satisfaction is a jury question. [Cit.]" Commercial Union Assur. Co. v. Southeastern Ventilating, 159 Ga.App. 443, 445-46, 283 S.E.2d 660 (1981). However, when the movant for summary judgment on this issue presents evidence which shows that ......
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