Saturday, May 17, 2014
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)
§ 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
§ Whether CAIS was the agent of Col. Penn.
· One cannot satisfy a debt owed another by paying his or her own agent
§ 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
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