North Carolina State Life Ins. Co. v. Williams

• Decision Date: 31 October 1884
• Court: North Carolina Supreme Court
• Parties: NORTH CAROLINA STATE LIFE INSURANCE COMPANY v. ORREN WILLIAMS.

91 N.C. 69

49 Am.Rep. 637

NORTH CAROLINA STATE LIFE INSURANCE COMPANY

v.ORREN WILLIAMS.

Supreme Court of North Carolina.

October Term, 1884.

CIVIL ACTION, commenced before a justice of the peace and tried on appeal at Fall Term, 1883, of EDGECOMBE Superior Court, before Shepherd, J.

The defendant was constituted and became an agent of the plaintiff company in the prosecution of its business of life insurance, under and by virtue of a contract mutually entered into, and in these words:

Memorandum of an agreement between the North Carolina State Life Insurance Company of the one part, and Orren Williams, of Edgecombe county, N. C., of the other part, witnesseth:

That the said company has appointed the said Williams its agent at Tarboro, N. C., for the purpose of soliciting applications for life insurance upon the terms and conditions following, to-wit: That upon premiums received for all kinds of policies, except endowment policies of less than twenty years, the said Williams shall receive a commission of twenty-five per cent. on first year payments, and five per cent. on renewals; and that upon endowment policies of less than twenty years he shall receive a commission of fifteen per cent. on first year payments, and five per cent. on renewals; that it shall be the duty of said Williams, on the first day of each and every month, to make to said company a detailed report of his doings as agent, and to pay over all moneys that may come into his hands rightfully belonging to said company.

In witness whereof the parties have hereto set their hands, this 12th April, 1873.

For the Company:

O. H. PERRY, Supervising Agent.

ORREN WILLIAMS, Agent.

In pursuance of the agreement, and in the exercise of his agency, the defendant collected and had in his hands previous to the bringing of the suit, of the funds belonging to the plaintiff, the sum of $109.85 not contested, which he refuses to pay, setting up as a defence a counter-claim for a larger amount alleged to be due as damages under the provisions of the contract.

The plaintiff company, unable to successfully conduct its business, sold out and assigned many policies, secured through the active efforts of the defendant, to another life insurance association, which assumed its responsibilities and undertook to carry out the arrangements and contracts between the assured and the assignor insuring company, in like manner as the latter had undertaken.

Since the transfer and discontinuance of the functions of the plaintiff, renewals have been effected upon two of the said policies through another agency employed by the assignee, the commissions on which at the rate specified in the agreement exceed the plaintiff's demand, and for this excess the defendant claims to be entitled to judgment.

Upon the hearing on the appeal in the superior court, judgment was recovered by the plaintiff for the amount of the claim and the defendant appeals.

Messrs. Walter Clark and J. L. Bridgers, Jr., for plaintiff .

Mr. George Howard, for defendant .

SMITH, C. J., after stating the above.

The only question presented is in reference to the construction of the contract of agency, and the rights of defendant thereunder.

The...