Heston

Heston v. Farmers Insurance Group

Good Law
160 Cal. App. 3d 402·1984 Cal. App. LEXIS 2550·206 Cal. Rptr. 585
Court of Appeal of CaliforniaSeptember 27, 1984Civ. 70023California4,798 words

Opinion

Opinion

Klein, J.

Defendants and appellants Farmers Insurance Group et al. (Farmers) appeal the denial of a requested injunction against plaintiff and respondent Richard E. Heston (Heston).

The judgment is affirmed because the trial court properly admitted parol evidence to ascertain the meaning of an ambiguous agreement, and thereupon made a reasonable interpretation of the agreement favoring Heston over Farmers.

Procedural and Factual Background

This case concerns the respective rights of Heston as an insurance agent and Farmers as an insurance company upon termination of the relationship.

Heston first became a part-time agent in an apprenticeship for Farmers under a reserve appointment agreement entered into in July 1976. On November 27, 1976, Heston entered into an agent appointment agreement (Agreement) with Farmers, a standard form contract used by Farmers with its career agents who sell insurance exclusively for Farmers. Heston sold Farmers’ insurance policies out of an office rented by him. He also paid his own business telephone, utilities, mailing, advertising, part-time solicitor and full-time secretary.

1. The Agreement and Open End Credit Plan (Credit Plan).

The…

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