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

Robert Evans v. Farmers Insurance Exchange, et al.

Published: Dec. 10, 2002 | Result Date: Nov. 13, 2002 | Filing Date: Jan. 1, 1900 |

Case number: SCV221296 Verdict –  $0

Judge

Laurence K. Sawyer

Court

Sonoma Superior


Attorneys

Plaintiff

Ray Estabrook


Defendant

Jeffrey P. Davis

Christopher S. Maile
(Tharpe & Howell LLP)


Experts

Plaintiff

Robert W. Johnson CPA
(technical)

Defendant

Thomas K. MacDonald
(technical)

Facts

The plaintiff was a 22-year insurance agent for the defendants. In September, 1997, the defendants notified the plaintiff that they were dissatisfied with the deterioration in his agency caused by a loss of customers, low new business production and unprofitable underwriting results. The defendants gave the plaintiff six months to correct the deficiencies in his agency. During the six-month period, the defendants discovered evidence suggesting the existence of a possible conflict of interest resulting from the plaintiff sharing office space with his wife, an insurance solicitor, who appeared to be placing insurance with the defendants' competitors. When the defendants were unsuccessful in obtaining information from the plaintiff regarding the possible conflict of interest situation, and the plaintiff failed to correct the deficiencies within his agency, the defendants notified the plaintiff that his Agent Appointment Agreement was being terminated on three month's written notice.

Settlement Discussions

The plaintiff submitted a demand of $600,000; the defendants offered, by way of C.C.P. Section 998, $21,000.

Damages

The plaintiff claimed damages of $493,000. The defendants estimated the purported lost profit damages to be circa $37,940.

Deliberation

four hours

Length

25 days


#80915

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

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