Wood v. Utah Farm Bureau Insurance Company2/8/2001
(For Official Publication)
Second District, Ogden Department The Honorable Michael Lyon
Plaintiffs appeal from a grant of summary judgment in favor of Defendants. On appeal, Plaintiffs contend material issues of fact exist, making summary judgment improper. We affirm in part, reverse in part, and remand.
BACKGROUND
Plaintiffs Wood, Tanner, Stokes, and Syphus are all former insurance agents of Farm Bureau Insurance Company (Farm Bureau). They wrote and serviced Farm Bureau insurance policies for clients. In the course of their work, Plaintiffs kept records regarding the policies and policy holders they serviced. Plaintiffs received an initial commission on each new insurance policy they wrote and a renewal commission on each renewed policy they were assigned to service. During their time as Farm Bureau agents, Plaintiffs each signed a Career Agent Contract (Contract), which governed their working relationship with Farm Bureau. The Contract includes a clause declaring the agent to be an independent contractor and not an employee. Also included is a clause providing that either party may terminate the Contract at any time, with or without cause. Tanner signed a Contract on February 9, 1994. Wood and Syphus signed Contracts on February 22, 1994, and Stokes signed a Contract on March 7, 1994. All of these Contracts were effective January 1, 1994.
Before signing the Contract, Plaintiffs Wood, Tanner, and Stokes met with their local Farm Bureau manager to discuss productivity and set goals for 1994. On October 15, 1993, the manager sent Wood, Tanner, and Stokes letters memorializing their individual sales goals. The letters also required each agent to complete one-half of his total sales goals by the end of the second quarter of 1994. If the agent was off target at that time, the letter stated that the manager would begin recruiting a new agent. A follow-up review was to occur at the end of the third quarter. Following completion of this review, the letter stated that one of two things could happen: (1) if the sales numbers met expectations, the manager would simply add the newly recruited agent; or (2) if the sales numbers did not meet expectations, the agent would be replaced by the newly recruited agent. After sending the letters, the Farm Bureau manager held weekly meetings with Wood, Tanner, and Stokes. During these meetings, the manager reviewed each agent's progress in meeting his goals. These weekly meetings continued until the three agents were terminated. On March 23, 1994, Farm Bureau representatives individually approached Wood, Tanner, and Stokes and read them a copy of a termination letter. Each letter states, "This letter is to inform you that we are canceling your contracts as a career agent this cancellation is to be effective March 25, 1994." Both Tanner and Stokes specifically asked why they were being terminated, and the Farm Bureau representatives' response was that they did not have to give a reason for termination.
Syphus worked in a different local office than the other Plaintiffs, but was similarly terminated. Following a meeting with Syphus, a local Farm Bureau manager sent Syphus a letter, dated June 30, 1994, which memorialized their agreed-upon goals. Unlike the lengthy review process for Wood, Tanner, and Stokes, Syphus's letter simply indicated that if he did not meet the goals, "retirement or career contract termination will be the alternative as of 9/30/94." On September 12, 1994, Syphus received a termination letter from Farm Bureau effective September 30, 1994. His termination letter contained the same language as the other Plaintiffs' termination letters. After receiving notice of terminatio
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