Opinion ID: 437663
Heading Depth: 1
Heading Rank: 3

Heading: the third party claim

Text: 25 In conjunction with its group creditor policy issued to Macon, Gulf Life entered into agreements with several persons, under which these individuals were paid commissions out of the premiums collected from the insured debtors in exchange for their efforts in insuring the debtors. These agreements contained the following provision: 26 Any overpayment of commissions or service fees hereunder due to a refund of premiums ... will be refunded to the Company [Gulf Life] on request. 27 Gulf Life brought a third party claim against Vonna Jo Gregory, one of these individuals, for a refund based on this agreement in the event Gulf Life was held liable for 100% of the unearned premium refunds. The trial court entered judgment in favor of Gulf Life on this claim. 28 Gregory on appeal does not dispute that the commission agreement obligates her to refund the commissions she received for insurance coverage on which unearned premium refunds became due. She contends, however, that the debt to Gulf Life was discharged in bankruptcy and that the trial court erroneously rejected this affirmative defense. Upon advis[ing] the Court via allegations in her answer that she [was] in a Chapter XII [sic] proceeding, she claims, the burden fell on Gulf Life to prove that its debt fell within an exception to a discharge that she now alleges resulted from the bankruptcy proceedings. 29 It is true that the creditor normally carries the burden of showing such an exception. In re Cross, 666 F.2d 873, 880 (5th Cir. Unit B 1982). It is clear from the record, however, that Gregory did not attempt to introduce into evidence an order of discharge or any other proof of discharge. Thus, the burden never fell on Gulf Life to show an exception to the discharge. See Kreitlein v. Ferger, 238 U.S. 21, 26, 35 S.Ct. 685, 686, 59 L.Ed. 1184 (1915); United States v. Syros, 254 F.Supp. 195, 198 (E.D.Mo.1966).