Opinion ID: 1694040
Heading Depth: 1
Heading Rank: 6

Heading: as to usf & g, teague, and teague insurance company

Text: In support of its respective motions for summary judgment, the insurance group of Defendants submitted a brief stipulation of facts and argued that any oral agreement to notify ACCO, in the event of the cancellation of Sayers's liability insurance policy, was invalid for lack of consideration, citing, as authority, United States Pipe and Foundry Co. v. United States Fidelity and Guar. Co., 505 F.2d 88 (5th Cir.1974). If United States Pipe is interpreted as saying, in all events where the insurance company agrees to notify one who is not the insured or the named loss payee and who did not pay the premium, that the requisite element of consideration is lacking, as a matter of law, then we reject that interpretation as an incorrect statement of Alabama law. While we do not so construe United States Pipe 's holding, the appellee insurance group urged this interpretation below and on appeal; and, unquestionably, the trial court's summary judgment order impliedly reflects this narrow construction. Be that as it may, under the totality of the circumstances in the instant case, we hold that a fact question is presented as to the presence or absence of the required element of consideration. If the jury is reasonably satisfied from the evidence that the promise of Teague Insurance to notify ACCO of any cancellation of Sayers's coverage was a mere gratuity or courtesy, unrelated to ACCO's efforts in placing the coverage with the Teague agency, then the jury would not be authorized to find a binding agreement to notify. If, on the other hand, the jury is reasonably satisfied that ACCO's president, or other corporate officer, accompanied Sayers to the Teague agency in furtherance of Sayers's contractual obligation to acquire insurance and that ACCO was instrumental in placing this coverage with the Teague agency on the condition that ACCO's interest be protected through notification by the Teague agency of any cancellation of the coverage, then the jury would be authorized to find the requisite element of consideration for the agreement; and for the failure to notify ACCO of the policy's cancellation, the Teague agency and USF & G could be held liable. We find no basis for liability against Teague individually; thus, we affirm the order of dismissal as to him. We reverse the judgment as to each corporate defendant and remand this cause for further proceedings not inconsistent with this opinion. AFFIRMED IN PART; REVERSED IN PART; AND REMANDED. TORBERT, C.J., and FAULKNER, SHORES and BEATTY, JJ., concur. MADDOX, ALMON, EMBRY and ADAMS, JJ., dissent.