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Employment Law
Wrongful Termination
Breach of Agreement

Mark Walling v. Farmers Group Inc., et al.

Published: Jan. 21, 2006 | Result Date: Nov. 17, 2005 | Filing Date: Jan. 1, 1900 |

Case number: 03CC05062 Verdict –  $0

Judge

Mary Fingal Erickson

Court

Orange Superior


Attorneys

Plaintiff

Gregory G. Rizio
(Rizio Lipinsky Law Firm)

Daren H. Lipinsky
(Rizio Lipinsky Law Firm, P.C.)


Defendant

Leonard Brazil
(Clark & Trevithick)

Phillip W. Bartenetti


Experts

Defendant

Thomas K. MacDonald
(technical)

Facts

Plaintiff Mark Walling was appointed as an independent contractor District Manager for defendants Farmers Insurance Exchange, Truck Insurance Exchange, Fire Insurance Exchange, Mid-Century Insurance Company, and Farmers New World Life Insurance Company, pursuant to a District Manager Appointment Agreement. The plaintiff was to provide services which included recruitment of agents for defendants and the representation of defendants and no other insurer in exchange for consideration in the form of overwrite commissions. The plaintiff's appointment was terminated for failure to meet the minimum requirements pursuant to his agreement with the defendant. Pursuant to the terms of the agreement, the plaintiff was paid a contractually agreed upon sum at the time of termination.

Contentions

PLAINTIFF'S CONTENTIONS:
The plaintiff contended that although his Appointment Agreement with the Insurance Company defendants expressly defined him as an independent contractor, the defendants' conduct towards the plaintiff over time changed the express contractual term, making the plaintiff an employee. The plaintiff claimed that the defendants breached the agreement by, among other ways, improperly interfering with his ability to perform under the agreement and holding him to standards that other District Managers were not held to. He further claimed that his involvement as a class representative in a class action against the defendants was a motivating factor in the defendants' decision to terminate his Appointment Agreement.

The plaintiff contended that he was damaged by the loss of income he could have anticipated earning from the point of his termination forward, and also the loss of the anticipated increased value of his district, if he had been permitted to continue as a District Manager.

DEFENDANTS' CONTENTIONS:
The defendants contended that the plaintiff was an independent contractor under the express terms of the contract and that the defendants' conduct towards the plaintiff did not change the contract's express terms. The defendants further contended that they properly terminated the plaintiff's Appointment Agreement for his failure to meet established production standards. The defendants also contended that the plaintiff's participation as a class representative did not play any role in the decision to terminate his Appointment Agreement and, in fact, they welcomed his participation as a class representative in the class action.

The defendants contended that, in the absence of liability, there was no basis for the plaintiff to recover any damages.

Damages

The plaintiff claimed emotional distress damages.

Result

Defense.

Other Information

PLEASE PROVIDE THE EXPERTISE OF Thomas MacDonald _________-

Deliberation

2.5 days

Length

15 days


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