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Employment Law
Wrongful Termination
Breach of Contract

Farmers Insurance, et al. v. Kanode, et al.

Published: Jun. 29, 2004 | Result Date: Oct. 30, 2003 | Filing Date: Jan. 1, 1900 |

Case number: 00CC04644 Verdict –  $668,000

Judge

Charles Margines

Court

Orange Superior


Attorneys

Experts

Facts

Defendant Kanode was an insurance agent for plaintiffs as an independent contractor under an agent appointment agreement. Beginning in 1997, Kanode exhibited mental instability, bizarre behavior and neglected her insurance agency. By late 1999, she was absent from her agency for prolonged periods and, unbeknownst to Farmers, she was placed in involuntary psychiatric confinement multiple times and had court appointed conservators. Farmers terminated the agent appointment agreement as a result of Kanode's inability to properly operate her agency. Kanode's refusal to return the policyholder files to Farmers following the termination resulted in this action being filed by the companies seeking equitable relief for return of their files. The court issued a preliminary injunction ordering all files be returned to Farmers. In turn, Kanode filed a cross-action against Farmers for libel, breach of contract, intentional interference with contractual relationships, and intentional interference with prospective economic advantage. The cross-action was tried before a jury.

Settlement Discussions

Cross-complainant Kanode demanded $90,000 before trial and $250,000 during jury deliberations. No offers were made after commencement of trial.

Other Information

Post-trial motions, Farmers filed motions for judgment notwithstanding the verdict and motion for new trial. The court granted judgment notwithstanding the verdict as to the intentional interference with prospective economic advantage. The court also granted a new trial as to the breach of contract, conditioned upon Kanode's consent to reduction of damages to $13,334. Kanode has appealed.

Deliberation

two days

Poll

12-0 (on cross-complaint)

Length

two months


#81172

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