This is the property of the Daily Journal Corporation and fully protected by copyright. It is made available only to Daily Journal subscribers for personal or collaborative purposes and may not be distributed, reproduced, modified, stored or transferred without written permission. Please click "Reprint" to order presentation-ready copies to distribute to clients or use in commercial marketing materials or for permission to post on a website. and copyright (showing year of publication) at the bottom.

Contracts
Breach of Contract
Breach of Implied Covenant of Good Faith and Fair Dealing

Morton J. Carlile, Morton J. Carlile Insurance Agency Inc. v. Farmers Group Inc., et al.

Published: Dec. 16, 2003 | Result Date: Oct. 10, 2003 | Filing Date: Jan. 1, 1900 |

Case number: GIC795112 Verdict –  $328,000

Judge

John S. Meyer

Court

San Diego Superior


Attorneys

Plaintiff

James T. Atkins


Defendant

Philip W. Bartenetti

Leonard Brazil
(Clark & Trevithick)


Experts

Plaintiff

Brian Bergmark
(technical)

Defendant

Thomas K. MacDonald
(technical)

Facts

The plaintiff, Morton J. Carlile, was a Farmers district manager who built and managed an insurance district. In April 2002, there were 55 insurance agents in his district. The plaintiff began his career as a Farmers district manager in 1956. He had an extremely successful career but, in the mid to late 1990s, he was losing a substantial number of agents and his performance was not meeting the minimum acceptable performance standards established by the companies. He failed to meet the minimum acceptable performance standards for consecutive years and was informed he would be subject to termination if his district did not meet those standards in the third year. His district failed to meet the standards. The plaintiff was given the option to resign or be terminated. He negotiated a resignation which, among other things, permitted him to continue as a district manager for an additional 11 months. During that 11-month period, he attempted to either rescind his resignation or extend the effective date of the resignation. The defendants refused and notified him that his termination would be effective on April 1, 2002, both to enforce his resignation and for poor performance. The plaintiffs sought compensatory damages of approximately $2.5 million for past and future lost profits.

Settlement Discussions

According to the defendant: The plaintiff demanded $5 million; the defendant made no offer.

Damages

Lost future profits.

Deliberation

10 hours

Length

six days


#123017

For reprint rights or to order a copy of your photo:

Email jeremy@reprintpros.com for prices.
Direct dial: 949-702-5390