Mopper v. Circle Key Life Ins. Co.
| Decision Date | 12 November 1969 |
| Docket Number | No. 53698,53698 |
| Citation | 172 N.W.2d 118 |
| Parties | Eleanor MOPPER, Appellee, v. CIRCLE KEY LIFE INSURANCE COMPANY, An Insurance Corporation, Appellant. |
| Court | Iowa Supreme Court |
Swisher & Cohrt, Waterloo, and Emmanuel Bikakis, Sioux City, for appellant and cross-appellee.
Stewart, Hatfield & Klass, Sioux City, for appellee and cross-appellant.
This law action for recovery of overwriting and renewal commissions, which plaintiff claims are due and owing under a Field Manager's Agreement, was tried to the court without a jury, pursuant to a stipulation of facts, and judgment in the sum of $9,285.60 was rendered in favor of plaintiff as of December 16, 1968, with a declaration that she was entitled to receive further commissions on premiums paid after December 16, 1968, for a period through the twentieth year of the agreement. Interest was granted only from the date of the judgment. Defendant appeals and plaintiff cross-appeals asking that the judgment be modified to allow interest from the dates when commissions became due her. We modify and affirm the judgment rendered herein.
In Division I of her petition the plaintiff, Eleanor Mopper, alleged inter alia that she was the beneficiary of an agreement entered into on or about July 1, 1966, by and between the defendant, Circle Key Life Insurance Company, and Sam Mopper, her deceased husband. She attached a copy of this agreement entitled 'Field Manager's Agreement', marked Exhibit A, alleged performance of the agreement, and claimed the commissions on renewal premiums collected by defendant since Sam Mopper's death. In Division II she sought a declaratory judgment construing the contract and adjudicating the rights, status, and legal obligations of the parties thereunder. She later amended her petition to allege that Sam Mopper died on August 21, 1967, and on December 19, 1968, amended Division I by substituting new paragraphs 6 and 7 and the prayer to increase the amount of the claim and the period covered in the original petition.
When defendant's motion to dismiss plaintiff's petition, on the ground that the contract did not provide for the relief prayed and that no facts were pleaded which would allow any renewal overwriting commissions under the provisions of paragraph 4 thereof, was overruled by the court on August 13, 1968, answer was filed. Pursuant to a written stipulation of facts dated December 19, 1968, the matter was submitted to the court, and on December 26, 1968, it rendered its judgment thereon.
The pertinent parts of Exhibit A are as follows:
'* * *
'COMMISSIONS
'The Company will allow the Field Manager first year overwriting commissions, overwriting renewal commissions, and service fees, provided for herein on premiums paid on policies written and delivered by the Field Manager and by agents working under the jurisdiction of the Field Manager within the territory herein assigned to the Field Manager. * * *
'RENEWAL OVERWRITING COMMISSIONS
'2. Renewal overwriting commissions will be allowed the Field Manager while this agreement remains in full force and effect on premiums paid on policies written by the Field Manager and agents working under the jurisdiction of the Field Manager. Such renewal overwriting commissions shall be payable during the premium paying period in accordance with the Overwriting Commissions shown above.
'If at the time this agreement is terminated, the total annual paid premium which was written and produced hereunder during a calendar year (excluding Single Premium Policies, Paid-Up Policies, Annuities, and Life Insurance in force under a nonforfeiture option) is less than $25,000 no renewal overwriting commissions shall be allowed subsequent to the effective date of such termination.
'VESTING PROVISIONS
'3. If at the time this Agreement is terminated, the minimum aggregate amount of annual paid premium referred to in paragraph 2 above shall be $100,000, the Field Manager shall be allowed renewal overwriting commissions in accordance with paragraph 2 above, on renewal premiums paid after termination of the Agreement. The renewal overwriting commissions payable hereunder, after termination, shall be allowed in accordance with the Schedule of Vested Renewals. * * *
'TERMINATION UPON DEATH OR TOTAL DISABILITY
'4. This Agreement shall automatically terminate upon the death of the Field Manager or upon his becoming totally or permanently disabled, the determination as to such total and permanent disability to be in the sole discretion of the Company. If this Agreement is so terminated, all first year overwriting commissions and renewal overwriting commissions shall be allowed.
'Upon the death of the Field Manager, any payment hereunder shall be made to the beneficiary designated the the Field Manager, if living; otherwise to the executor or administrator of the estate of said Field Manager.
'GENERAL PROVISIONS
'5. * * * (k) First year overwriting commissions, renewal overwriting commissions and fees are subject to change at any time by written notice by the Company to the Field Manager, but no such change shall affect commission on any policy issued prior to the effective date of such change. This Agreement may be terminated at will, with or without cause, provided, however, that the Company must show cause for termination after the Field Manager has attained $50,000 of in force paid premium, by ten (10) days' written notice prior to the effective date of such termination by the Company to the Field Manager, or by the Field Manager to the Company; provided that in the event of breach by the Field Manager of the provisions of sub-paragraphs (c), (e), (i), (j), (n), (o) and (q) of the General Provisions of this Agreement, the Company shall be entitled, at its election, to cancel this Agreement by written notice effective immediately, in which event the Field Manager shall have no rights or claims against the Company, and shall thereby forfeit any further payment of commissions or service fees which he might otherwise be entitled to hereunder; * * *.'
In its August 13, 1968, ruling denying defendant's motion to dismiss, the trial court wrote:
'Plaintiff, Eleanor Mopper, by Division I of the Petition, seeks to recover claimed accrued overwriting commissions due her as beneficiary under contract between her deceased husband and defendant, and by Division II of the Petition asks for declaratory relief with respect to future commissions.
'The defendant has filed a Motion to Dismiss Divisions I and II.
'The general claims set out in Paragraphs 1, 2 and 6 of Division I of the motion give no grounds for dismissal. The general allegations of the petition are sufficient. By Paragraph 3 it is claimed that renewal overwriting commissions are only allowable while the contract is in full force and effect. This contention cannot be sustained in view of specific contractual provisions for allowance after termination.
'Paragraphs 4 and 5 of the motion go to the heart of the controversy and raise the matters principally discussed in argument and the briefs submitted by the parties. There could well be some doubt that the questions presented are yet ripe for decision. By the motion and the resistance thereto filed by the plaintiff, however, the parties have tendered the issue between them and have, in effect, mutually asked for an adjudication of law points. They have fully argued the matter and submitted briefs thereon. The court will, therefore, now decide the questions presented.
'It is the position of the plaintiff that she is entitled to recover as beneficiary under the contract for certain overwriting commissions as provided by Paragraph 4 of the agreement which provides that if the contract is terminated by death of Mr. Mopper 'all first year overwriting commissions and renewal overwriting commissions shall be allowed.' It is the position of the defendant that the provisions of Paragraph 4 are subject to the provisions of Paragraphs 2 and 3 of the contract which require $25,000.00 annual paid premiums 'during a callendar year' and a minimum aggregate amount of annual paid premiums of $100,000.00 at the time of the termination before after-termination commissions are payable and that the plaintiff is only entitled to such commissions as Mr. Mopper would receive if he survived. This is the interpretation of Paragraphs 2 and 3 placed upon them by the parties and for the present purposes the court accepts such interpretation. Whether or not Mr. Mopper's premiums reached the $25,000.00 and $100,000.00 is not shown by the pleadings.
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