Opinion ID: 1766361
Heading Depth: 1
Heading Rank: 12

Heading: the renewal commissions

Text: The next matter concerns the renewal commissions. Respondent's renewal commissions are his stake in the insurance policies sold through the agency during his tenure as general agent. For each policy sold, respondent received a percentage of the policy premium. Respondent received 7% of the premium on the policy through the second year and 2% of the premium for policies renewed during years three through ten. A single policy could be a source of agent income for up to ten years. At trial respondent submitted two types of renewals, both the renewals due at termination, valued at $128,520 and the renewals due after respondent reached age 65 valued at a present value of $87,121. Respondent's claim on policies he might have sold if he had continued as the general agent is improper because it is based on speculation. An action for conversion must be based on more than mere speculation, guesswork or conjecture. Brown v. Meyer, 580 S.W.2d 533, 536 (Mo. App.1979). This item should not have been submitted to the jury on the theory of conversion. The value of the renewal commissions due at respondent's termination was also incorrectly submitted to the jury. The General Agent's Agreement calls for the company to pay to the General Agent commissions on premiums received by the company, but not before the due date of any such premiums. Respondent was entitled to these renewal commissions but his right to possession was not realized until the due date. Respondent has failed to show he had an immediate right to possession of the renewal commissions at the time of the alleged conversion. A plaintiff charging conversion must show possession or the right to possession, or an ownership which carries with it the right to immediate possession. Osborn v. Chandeysson Electric Co., 248 S.W.2d 657, 663 (Mo.1952); Brown v. Meyer, 580 S.W.2d 533, 534 (Mo.App.1979). Respondent's right to possess these commissions did not accrue until the time that each policy's premium was due. The commissions should not have been treated as converted. From the preceding analysis we reach the conclusion that the conversion count was improperly submitted to the jury. We reverse the finding of conversion entered by the trial court.