Interstate Group Administrators, Inc. v. Cravens, Dargan & Co.

Plaintiff and cross-defendant Interstate Group Administrators, Inc. (hereinafter Interstate or appellant) appeals from a judgment of the superior court awarding respondent Cravens, Dargan & Co. (hereinafter Cravens or respondent) $64,706.31 on its cross-complaint which alleged a common count to recover a sum due on an open book account. We find that the trial court improperly prevented Interstate from presenting evidence of a setoff to Cravens’ claim. Accordingly, we reverse the judgment and re mand for retrial for the limited purpose of allowing Interstate to present such evidence.

Procedural Summary

The proceedings below were initiated by Interstate to recover commissions on insurance policies which it had sold on behalf of Cravens as Cravens’ agent. Cravens cross-complained against Interstate to recover premiums due Cravens which Interstate had collected and allegedly withheld. The cause was tried before the court sitting without a jury; the court found that Cravens was entitled to $82,652.52 on its cross-complaint and that Interstate was entitled to $17,946.21 on its complaint. Thus, judgment for the net amount of $64,706.31 was entered in favor of Cravens and…