BYRON PATEK, APPELLANT,
v.
ASSOCIATED INSURANCE UNDERWRITERS, INC., A FLORIDA CORPORATION, AND PETER J. KELLY, JOINTLY AND SEVERALLY, APPELLEES
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Patek sued for breach of an insurance contract, obtaining a jury verdict against Associated Insurance Underwriters, Inc. but facing a directed verdict in favor of individual Kelly. The appellate court reversed the directed verdict as to Kelly, holding that under Florida's insurance statutes, an individual licensed agent may be held liable for business transacted by solicitors under his license, even when conducted through a corporate entity.
Yes. The court held that Kelly's individual liability for the corporation's conduct could extend to him because Florida Statute § 626.0111(3) places responsibility on a licensed agent with respect to business transacted by a solicitor under his license. The jury should have been permitted to determine Kelly's individual liability just as it did the corporation's liability.
“We must agree with the contention of the appellant that the liability for which the corporation was held could extend to Kelly individually, because § 626.0111(3) appears to place responsibility on such an agent with respect to business transacted by a solicitor under his license.”
The court's holding that Kelly's individual liability should have been submitted to the jury based on statutory responsibility for solicitor transactions.
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Join FLexlaw to unlock all legal intelligenceByron Patek filed suit for damages for breach of contract to supply marine insurance. Kelly was a duly licensed lines agent under Florida law who chos…
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Byron Patek filed an action in the ■circuit court against Associated Insurance Underwriters, Inc. and Peter J. Kelly for damages for breach of contract to supply •certain marine insurance. On trial of the case before a jury the plaintiff won a verdict against the defendant corporation for $19,500, and a verdict was directed in favor of the defendant Kelly. This appeal by the plaintiff involves the latter ruling. The appellant contends the question of Kelly’s liability, like that of the corporation, should have been presented to the jury because the licensed agency held by Kelly was the basis for the transaction of the business, with the result that the corporation was acting under and as agent of the agency holder, Kelly.1
Kelly was a duly licensed lines agent under the Florida Insurance Code, Chapter 626, Fla.Stat., F.S.A. He chose to exercise bis agency through the corporation, of which he was a member and officer. The ■corporation was not, and under the statute could not be so licensed as agent. § 626.-0105(1), Fla.Stat., F.S.A. The contract sued upon was negotiated with plaintiff by a solicitor who was an employee of the corporation. His appointment as a solicitor was dependent upon Kelly’s agency. § 626.-0110, Fla.Stat., F.S.A. The fact that a verdict was rendered in plaintiff’s favor against the corporation establishes that a prima facie case was made out. We must agree with the contention of the appellant that the liability for which the corporation was held could extend to Kelly individually, because § 626.0111(3) appears to place responsibility on such an agent with respect to business transacted by a solicitor under his license.
Accordingly the judgment is reversed in part, that is, to the extent it is predicated on the directed verdict in favor of the defendant Kelly, and the cause remanded for a new trial as to that defendant.
Reversed in part and remanded.
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Kelly v. Patek, 172 So. 2d 520 (Fla. 3d DCA 1965)…PER CURIAM. This is the second appearance of this cause in this court. See: Patek v. Associated Insurance Underwriters, Inc., Fla.App.1964, 160 So. 2d 721. Following the rendition of our opinion and mandate in this matter, the cause returned to the trial court whereupon the plaintiff, the appellee herein, moved for a summary judgment and for a final judgment. The matter came on for hearing before the…
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Town of ST. Lucie Vill. v. State ex rel. Kearney, 166 So. 2d 755 (Fla. 1964)…Certiorari denied without opinion. 160 So. 2d 721.…