Eddy v. United States Fidelity & Guaranty Co.
Opinion of the Court
This appeal brings up for review an interlocutory order of injunction granted appellee, as complainant below, under the terms and conditions of a written contract entered into between the parties on the 6th day of October, 1917, by the terms of which appellant, defendant below, was appointed as a special agent for a term of 10 years, under the terms, conditions, and provisions therein written. ' The parties for convenience will be designated as on the record made in the trial court.
There are no disputed questions of fact involved in the case. The entire matter depends upon the true construction of a provision of the contract, viewed as an agency contract, creating a relation of trust and confidence between the parties, such as that relation in law implies. The disputed provision of the contract reads as follows:
“The party of the first part shall report to the party of the second part all risks assumed under the aforesaid specially described policies, and shall keep complete records of all business .transacted on behalf of the party of the second part, and shall render to the party of the second part, through its branch office located in the city of St. Louis, state of Missouri, at the close of each month, upon monthly account blanks to be furnished for that purpose by the party of the second part, a statement of all the business procured through the said agency during the current month, and shall make full settlement with the party of the second part, through its branch office in the city of St. Louis, on or before the I5th day of the month succeeding, of all moneys due the party of the second part hereunder, and he shall conform to all the regulations and conditions of the party of the second part’s letters, circulars, and books of instructions to its agents and account blanks for the keeping and rendering of accounts. All of the said policies shall be consecutively numbered, and it is agreed that said party of the second part shall at all times have the right to audit the books and accounts of the party of the first part.”
It is the contention of defendant this provision of the contract relates solely and alone to the way and manner in which the accounting between his office and that of the complainant and its customers should be kept. As to other matters, such as what risks should be assumed by complainant, or on what terms the same should be canceled, as to the manner in which the business should be conducted, etc., all such matters were beyond the control of complainant and exclusively within the power of the defendant as agent. At the trial, in harmony with that construction which the court placed upon the provision of the contract quoted above, defendant was restrained and enjoined in three particulars, namely:
First. “From issuing certificates of insurance in any places or in any states wherein the plaintiff has branch office inspectors until the premises of the applicants for such certificates of insurance have been inspected by said*630 inspectors, and until and unless said inspectors have advised the defendant that the risk is satisfactory from the standpoint of the moral and physical hazard involve*!.”
Second. “From refusing to make cancellations of certificates of insurance issued by the defendant, when directed to do so by the plaintiff.”
Third. “From issuing and publicly distributing circulars printed and literature in connection with the conduct of the defendant’s agency for the plaintiff, unless and until the same have been submitted for approval to the plaintiff, and unless and until the same have been approved by the plaintiff.”
Hence this appeal.
Again, as the proofs disclose, the defendant has arrogated to himself the exclusive right to issue such indemnity contracts and make them binding upon complainant, his principal, and as he has in his possession the blank forms of such contracts made binding solely at his pleasure and by his signature, it is entirely too evident the form of such circular letters and advertising as was being conducted by defendant without the knowledge or approval of complainant, on many grounds and for many reasons, as we have construed the con
[ 5 ] As has been stated, the right of complainant to provide for the cancellation of its contracts is undoubted. This being true, it can impose the duty of making such cancellations in fact on any agent or representative who may wish to assume the task and complainant may lawfully empower.
Hence the order on defendant to make cancellation of contract is accordingly set aside, and, so modified, the order of injunction will stand.
Reference
- Full Case Name
- EDDY v. UNITED STATES FIDELITY & GUARANTY CO.
- Status
- Published