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Klapp v. United Insurance Group Agency, Inc.

Michigan Supreme Court
663 N.W.2d 447 (Mich. 2003)


The Agent’s Agreement and the Agent’s Manual of United Insurance Group Agency, Inc. (United) (defendant) contained conflicting policies with regards to payment of commissions when employees’ former clients renew their insurance policies. Specifically, the stated policies differed with respect to how long an employee had to work for United before he was entitled to such commissions. Craig Klapp (plaintiff) was a former United employee who had worked for the company for seven years, which was sufficient to be paid commissions under one stated policy, but not sufficient tenure to be paid under the other policy. When Klapp’s former clients renewed their insurance policies, United refused to pay Klapp the associated commissions. Klapp brought suit for breach of contract. At trial, Klapp introduced evidence that United previously paid renewal commissions regardless of how long the agents had worked for United. The trial court found in favor of Klapp. The court of appeals reversed. Klapp appealed.

Rule of Law


Holding and Reasoning (Markman, J.)

Concurrence (Weaver, J.)

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