Joseph Land & Co., Inc. v. Gresham
Joseph Land & Co., Inc. v. Gresham
Opinion
The defendants, Joseph Land Company, Inc. ("Land Company"), and Charles Browning, appeal from a judgment entered on a $100,000 jury verdict in favor of the plaintiffs, Paul and Martha Gresham, d/b/a G G Agency, in this action based on allegations of breach of contract and fraud. We affirm in part, reverse in part, and remand.
Land Company, whose primary business is hauling freight, entered into a "commission agent agreement" with Daisy Enterprises, Inc. ("Daisy"). Pursuant to this agreement, Daisy was to receive a commission for soliciting business for Land Company and negotiating leases between Land Company and independent tractor-trailer owners. Browning was an employee of, and the majority stockholder in, Daisy. The Greshams, along with their son, David, were independent tractor-trailer owners doing business as G G Agency. The Greshams leased their tractor-trailer to Land Company through Daisy. During the lease negotiations, the Greshams asked Browning about collision insurance coverage for their tractor-trailer. Browning explained to them that they were required under the lease to obtain collision coverage, but that Land Company had a group policy under which their tractor-trailer could be insured, at their option, by having premiums deducted from their freight settlements. David Gresham testified that he and Martha Gresham submitted an application to Land Company, through Browning, seeking coverage under Land Company's group collision insurance policy. Martha Gresham testified that subsequent *Page 925 to the Greshams' discussions with Browning, and after they had signed a lease with Land Company, she telephoned Browning to inquire as to whether the tractor-trailer had been insured under Land Company's group policy. She testified that Browning stated: "Don't worry, it's being taken care of, they're going to send it [a copy of the policy] to you; it just takes procedure." The Greshams' tractor-trailer was later damaged in an accident and the Greshams' driver immediately contacted Browning, who told him that the truck was covered. The record indicates that Browning subsequently contacted Land Company and attempted to obtain retroactive coverage for the Greshams. Although Browning assured the Greshams following the accident that their tractor-trailer was covered, the Greshams ultimately discovered that they, in fact, had no coverage under Land Company's group policy.
The Greshams sued Land Company and Browning, alleging that Browning had agreed to obtain collision insurance for them and that he had failed to do so, that Browning had intentionally misrepresented to them that they had collision coverage and suppressed the fact that they did not, and that they had relied on Browning's misrepresentation and silence to their detriment by not obtaining insurance elsewhere. The breach of contract and fraud claims against Land Company were based on allegations that Browning had dealt with the Greshams as an agent of Land Company. The Greshams sought to recover both compensatory and punitive damages. The case was tried to a jury, which returned a verdict in favor of the Greshams for $25,000 in compensatory damages and $75,000 in punitive damages.
As previously noted, the Greshams' claims against Land Company were based on allegations that an agency relationship existed between Land Company and Browning. At trial, Land Company adamantly disputed the existence of such a relationship and intended to rely heavily on the "commission agent agreement." That agreement characterized Daisy as an independent contractor and purported to limit the ability of Land Company to control the manner in which Daisy was to conduct its business as well as Daisy's authority to bind Land Company in contract. In pertinent part, it read as follows:
"[Daisy] is now and during the existence of this agreement shall continue to be an independent contractor, and nothing contained in this agreement shall be construed to the contrary; that the authority and powers granted to [Daisy] are expressly limited by this agreement; that in the event [Daisy] deems it necessary to hire employees in fulfilling [its] duties and services under this agreement, such employees shall be subject to the full control and direction of [Daisy] at all times, and at [its] own expense. Although [Daisy] promises and agrees to comply with the rules, regulations, and instruction[s] of [Land Company] promulgated in the conduct of its business, [Land Company's] interest in this agreement is the accomplishment by [Daisy] of the service[s] contemplated by this agreement and not the means by which said services have been accomplished.
". . . .
*Page 926"[Daisy] shall be authorized to negotiate and enter in leases with owners of motor equipment for the lease of such motor equipment and driver[s] to [Land Company] on a single trip basis only, provided, however, the terms, compensation, and conditions of the lease shall be those prescribed by [Land Company] in its rules, regulations, policies, and instructions issued by [Land Company] to [Daisy]. . . .
"[Daisy] may interview owner-drivers desiring to lease their equipment to [Land Company] and enter permanent employment with [Land Company] and, thereupon, submit such written employment applications and equipment leases to [Land Company] for approval, acceptance, and execution by [Land Company]."
However, when this agreement was offered into evidence by Land Company, the trial court sustained the Greshams' objection and refused to admit it, on the ground that the Greshams were not parties to it. The trial court's ruling was based, it seems, on a determination that the "commission agent agreement" was not relevant to the case. The Greshams argue on appeal that the agreement was not relevant because Daisy was never named as a party to this action.
It is well settled that a trial court has considerable discretion in ruling on an objection challenging the relevancy of evidence and that such a ruling will not be disturbed absent an abuse of discretion. AmSouth Bank, N.A. v. Spigener,
Evidence is relevant if there is any logical relationship between it and the ultimate inference for which it is offered. See C. Gamble, McElroy's Alabama Evidence,§ 21.01 (4th ed. 1991), and the cases cited therein. In the present case, Land
Company, relying on the well-settled rule that a principal is not ordinarily liable for the torts of its independent contractor, Fuller v. Tractor Equipment Co.,
We disagree, however, with Land Company's contention that it was entitled to a judgment as a matter of law on the Greshams' fraud claims. Land Company argues that the Greshams' testimony regarding the representations that were made by Browning during the lease negotiations was erroneously admitted by the trial court over its objection that that testimony was inadmissible under the parol evidence rule. Without this testimony, Land Company insists, the Greshams could not have proven an element essential to each of their fraud claims — misrepresentation or suppression of a material fact — and, therefore, the trial court would have been required to direct a verdict in its favor or to enter a judgment in its favor notwithstanding the verdict. Land Company also contends that even if the Greshams' testimony was admissible, it could not be reasonably inferred from the evidence as a whole that Browning had an agency relationship with Land Company or that the Greshams justifiably relied on any representation that Browning may have made concerning the insurance coverage.
Parol evidence is admissible to show that a written agreement was procured by fraud. Ramsay Health Care, Inc. v. Follmer,
Finally, without providing a complete recitation of the evidence in this case, suffice it to say that we are satisfied from our review of the record that there was a dispute in the evidence that warranted a jury's determination as to whether Browning had an agency relationship with Land Company and as to whether the Greshams justifiably relied on Browning's representations concerning the insurance coverage.1
AFFIRMED IN PART; REVERSED IN PART; AND REMANDED.
HORNSBY, C.J., and SHORES, ADAMS, HOUSTON and INGRAM, JJ., concur.
Reference
- Full Case Name
- Joseph Land Company, Inc. v. Paul Gresham and Martha Gresham, D/B/A G G Agency. Charles Browning v. Paul Gresham and Martha Gresham, D/B/A G G Agency.
- Cited By
- 17 cases
- Status
- Published