McCullough v. Brandt

Decision Date28 February 1967
PartiesSimeon McCULLOUGH, Appellant, v. Carl L. BRANDT, Sr., et al., Respondents.
CourtWisconsin Supreme Court

William F. Krueger, Wausau, for appellant.

A. D. Sutherland, Fond du Lac, for respondents.

HANLEY, Justice.

The question involved on this appeal is whether the plaintiff insurance salesman is entitled to commissions on all renewal premiums under the terms of the insurance contract.

The plaintiff contends that he is entitled to commissions on all premiums paid hereafter regardless of when paid. The defendant contends that plaintiff is entitled to commissions only on such premiums within such one year period.

Paragraph 4 of the contract is the only section requiring interpretation to resolve the case. It reads as follows:

'4. the party of the second part shall have a vested interest in the commissions to which he is entitled. He shall have the the right to assign this contract provided the assignee is acceptable to the first party and he so states in writing. In case of the death of the second party, this contract right to premiums shall be a part of his estate and may be assigned subject to the approval of the first party. If this contract is not renewed, the second party shall continue to receive the foregoing commissions on premiums paid, for a period of one year from the date of termination or death.'

The plaintiff argues that par. 4 means that plaintiff was given a probationary period of two years and that once the probationary period ended and the contract was continued, he is entitled to future commissions on policies sold by him no matter when paid.

We believe such an interpretation would require reading into the contract far more than the provisions will allow.

There does not appear to be any logical reason for distinguishing between renewal premiums on policies sold during the so-called probationary period in the event of termination before the two-year period expired and policies sold subsequent to the original contract period where the contract was continued.

By accepting the plaintiff's construction of the contract the court would be severing from the contract the clause limiting commissions to one year after termination of the contract.

In the interpretation of a contract the contract must be considered as a whole in order to give each of its provisions the meaning intended by the parties. Ketay v. Gorenstein (1952), 261 Wis. 332, 53 N.W.2d 6.

The argument of plaintiff would make the limitation period surplusage and valueless. Other things being equal, a construction which gives effect to every word of a contract should be preferred to one which results in surplusage. Knuth v. Fidelity & Casualty Co. (1957), 275 Wis. 603, 604, 83 N.W.2d 126.

This court, in Nelson v. Boos (1959), 7 Wis.2d 393, 399, 96 N.W.2d 813, 817, said:

'* * * A construction which renders meaningless a provision expressed in the contract or results in surplusage...

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13 cases
  • Seitzinger v. Community Health Network
    • United States
    • Wisconsin Supreme Court
    • March 25, 2004
    ...of the parties is to be collected from the entire instrument . . . ."). 35. Tempelis, 169 Wis. 2d at 9; see also McCullough v. Brandt, 34 Wis. 2d 102, 106, 148 N.W.2d 718 (1967) ("In the interpretation of a contract, the contract must be considered as a whole in order to give each of its pr......
  • Stanhope v. Brown County
    • United States
    • Wisconsin Supreme Court
    • June 29, 1979
    ...meaning to every provision of a contract is preferable to one leaving part of the language useless or meaningless. McCullough v. Brandt, 34 Wis.2d 102, 148 N.W.2d 718 (1967). This court has applied this principle specifically to insurance policies: "A construction of an insurance policy whi......
  • Domann v. Summit Credit Union
    • United States
    • U.S. District Court — Western District of Wisconsin
    • September 13, 2018
    ...which gives effect to every word of a contract should be preferred to one which results in surplusage." McCullough v. Brandt, 34 Wis. 2d 102, 106, 148 N.W. 2d 718 (1967) (citation omitted). The word "available" has meaning only if it denotes something other than "all of the funds" or "actua......
  • Silvey v. Numerica Credit Union
    • United States
    • Washington Court of Appeals
    • November 1, 2022
    ...(1967) (citation omitted). The word "available" has meaning only if it denotes something other than "all of the funds" or "actual balance." Id. The court also observed that the funds availability policy-by informing members that the entirety of funds deposited in the account will not necess......
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