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Company not bound by defiant agent's actions

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A trial court erred in finding that a company was bound by its insurance agency's acts even though the agency acted against the company's wishes, the Indiana Court of Appeals ruled today.

Lupke Rice Insurance Agency sued former client Maxitrol to recover workers' compensation insurance premiums the agency paid on behalf of Maxitrol to insurance providers EBI Cos. and Royal Sun Alliance. Audits by the insurers found Maxitrol improperly classified some workers and owed additional premiums. Lupke Rice paid those premiums against the wishes of Maxitrol, which challenged the adjustment to their premiums. Lupke Rice agent Stanley Rice never told Maxitrol the company paid the premiums until after Maxitrol ended its workers' compensation insurance with Lupke Rice.

Maxitrol and Lupke Rice didn't reach an agreement on the unpaid adjustments and Lupke Rice sued Maxitrol for the nearly $64,000 in premium adjustments. The trial court found in favor of Lupke Rice, ruling Maxitrol was bound by Lupke Rice's acts, and that Maxitrol ratified the agency's payment of the adjusted premiums.

In Maxitrol Co. v. Lupke Rice Insurance Agency, Inc., No. 02A03-0905-CV-216, Maxitrol argued it's not liable for the adjusted premiums because Lupke Rice disregarded its instructions not to pay them. The Indiana Supreme Court has said that a principal is bound by the acts of a general agent if the agent acted within the ordinary and usual business scope in which it was employed, even if the agent violated private instructions of the principal. If either an innocent principal or a third party must suffer due to the betrayal of an agent's trust, then the loss should fall on the principal as the party who is most at fault because it put the agent in the position of trust.

But the rationale behind the rule doesn't apply in the instant case, wrote Senior Judge John Sharpnack.

"Here, we have a disobedient agent seeking reimbursement rather than an innocent third party seeking to enforce an agent's representations," he wrote. "Further, where a principal has instructed an agent not to do something, and the agent disobeys the principal, the agent is clearly more at fault than the principal. The rule was not intended to protect a disobedient agent."

The trial court also erred in ruling that Maxitrol ratified Lupke Rice's payments to Royal Sun Alliance. To hold a principal liable on grounds of ratification - explicit or implicit - it must be shown the principal ratified upon full knowledge of all material facts, or that he was willfully ignorant. Maxitrol didn't know Lupke Rice paid the RSA the premium adjustments and didn't learn about them until more than a year after the last payment was made.

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  1. Ah ha, so the architect of the ISC Commission to advance racial preferences and gender warfare, a commission that has no place at the inn for any suffering religious discrimination, see details http://www.theindianalawyer.com/nominees-selected-for-us-attorney-in-indiana/PARAMS/article/44263 ..... this grand architect of that institutionalized 14th amendment violation just cannot bring himself to utter the word religious discrimination, now can he: "Shepard noted two questions rise immediately from the decision. The first is how will trial courts handle allegations of racism during jury deliberations? The second is does this exception apply only to race? Shepard believes the exception to Rule 606 could also be applied to sexual orientation and gender." Thus barks the Shepard: "Race, gender, sexual orientation". But not religion, oh no, not that. YET CONSIDER ... http://www.pewforum.org/topics/restrictions-on-religion/ Of course the old dog's inability to see this post modern phenomena, but to instead myopically focus on the sexual orientation issues, again betrays one of his pet protects, see here http://www.in.gov/judiciary/admin/files/fair-pubs-summit-agenda.pdf Does such preference also reveal the mind of an anti-religious bigot? There can be no doubt that those on the front lines of the orientation battle often believe religion their enemy. That certainly could explain why the ISC kicked me in the face and down the proverbial crevice when I documented religious discrimination in its antechambers in 2009 .... years before the current turnover began that ended with a whole new court (hallelujah!) in 2017. Details on the kick to my face here http://www.wnd.com/2011/08/329933/ Friends and countrymen, harbor no doubt about it .... anti-religious bias is strong with this old dog, it is. One can only wonder what Hoosier WW2 hero and great jurist Justice Alfred Pivarnik would have made of all of this? Take this comment home for us, Gary Welsh (RIP): http://advanceindiana.blogspot.com/2005/05/sex-lies-and-supreme-court-justices.html

  2. my sister hit a horse that ran in the highway the horse belonged to an amish man she is now in a nurseing home for life. The family the horse belonged to has paid some but more needs to be paid she also has kids still at home...can we sue in the state f Indiana

  3. Or does the study merely wish they fade away? “It just hasn’t risen substantially in decades,” Joan Williams, director of the Center for WorkLife Law at the University of California Hastings College of the Law told Law360. “What we should be looking for is progress, and that’s not what we’re seeing.” PROGRESS = less white males in leadership. Thus the heading and honest questions here ....

  4. One need not wonder why we are importing sex slaves into North America. Perhaps these hapless victims of human trafficking were being imported for a book of play with the Royal Order of Jesters? https://medium.com/@HeapingHelping/who-are-the-royal-order-of-jesters-55ffe6f6acea Indianapolis hosts these major pervs in a big way .... https://www.facebook.com/pages/The-Royal-Order-of-Jesters-National-Office/163360597025389 I wonder what affect they exert on Hoosier politics? And its judiciary? A very interesting program on their history and preferences here: https://www.youtube.com/watch?v=VtgBdUtw26c

  5. Joseph Buser, Montgomery County Chief Prosecutor, has been involved in both representing the State of Indiana as Prosecutor while filing as Representing Attorney on behalf of himself and the State of Indiana in Civil Proceedings for seized cash and merchandise using a Verified Complaint For Forfeiture of Motor Vehicle, Us Currency And Reimbursement Of Costs, as is evident in Montgomery County Circuit Court Case Number 54C01-1401-MI-000018, CCS below, seen before Judge Harry Siamas, and filed on 01/13/2014. Sheriff Mark Castille is also named. All three defendants named by summons have prior convictions under Mr. Buser, which as the Indiana Supreme Court, in the opinion of The Matter of Mark R. McKinney, No. 18S00-0905-DI-220, stated that McKinney created a conflict of interest by simultaneously prosecuting drug offender cases while pocketing assets seized from defendants in those cases. All moneys that come from forfeitures MUST go to the COMMON SCHOOL FUND.

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