Palmer & Cay/Carswell, Inc. v. Condominium/Apartment Ins. Servs., Inc. case brief summary

Palmer & Cay/Carswell, Inc. v. Condominium/Apartment Ins. Servs., Inc. (S.C. 1991)

o   Facts

§  CF purchased insurance from Carswell (then acquired by PC)

·         Carswell obtained the policy from CAIS. Col. Penn. Issued the policy.

§  CF requested cancellation of the policy.

§  PC refunds some of the unearned premiums to CF

§  CAIS did not reimburse PC for the refund. Nor did Col. Penn.

§  Col. Penn. did give the reimbursement funds to CAIS though.

§  There was a contract which said explicitly that CAIS is an independent contractor.

·         However, the contract also specified CAIS as having binding authority and that, inter alia, it was appointed Col. Penn’s legal representative and lawful attorney

o   Issue   

§  Whether CAIS was the agent of Col. Penn.

·         One cannot satisfy a debt owed another by paying his or her own agent

o   Holding

§  Question of fact exists as to whether CAIS was the agent of Col. Penn.

·         The fact that you label somebody as an independent contractor does not resolve the issue of whether you are, in fact, an agent