Stagg v. Insurance Co.

Supreme Court of the United States
Stagg v. Insurance Co., 77 U.S. 589 (1870)
Millee

Stagg v. Insurance Co.

Opinion of the Court

Mr. Justice MILLEE

delivered the opinion of the court.

The right of the insurance company to terminate the agency of the plaintiff, at its discretion, is not denied by his counsel, nor is there any serious effort to support the offer to prove the custom. Indeed, if the court was right in holding that the contract between the parties was expressed by the language of the second circular, it is quite clear there was no room for usage, for it is there expressly stated that *593the commission on the renewal premiums, like 'those on the original premiums, was to be paid only so long as the plaintiff continued to be the agent of the company.

Nor can we doubt for a moment that the later circular must bo held to represent the agreement of the parties as to compensation. After having received that circular and acted on it for fifteen years, received and adjusted his compensation by it, he is estopped to deny that it was the contract under which h,e acted. If there was any other contract it was for him to show it. He does not do this by producing, the circular of the year previous. If there was anything fraudulent., unfair, or illegal in the new terms offered, or in the mode in which he was induced to accept them, he should have shown it, but he' has not even attempted it.

We are, therefore, clearly of opinion that when it is shown that, as agent of the company, he received and acted upon that circular, he is bound by its terms as the measure of his compensation.

Judgment affirmed.

Reference

Full Case Name
Stagg v. Insurance Company
Cited By
2 cases
Status
Published
Syllabus
1. Where there is an express contract for the compensation of an insurance agent, no proof of a general custom as to such compensation is admissible which is in conflict with the contract. 2. Where such agent had received a general circular from his company, which contained in clear language the terms of his compensation, and had acted on that circular without complaint for several years, he is estopped to deny that ho was employed on those terms. 3. The production of a circular of prior date, with other terms as to compensation, does not alter the case.