Fewel & Dawes Inc. V. Pratt

TRAYNOR, J. The appellant, Franklin L. Pratt, a licensed life insurance broker, had written several policies of life insurance for John G. Bullock of Los Angeles. In 1928 Bullock decided to take out additional life insurance amounting to $150,000 under an arrangement that would enable his son-in-law, Richard W. Fewel, to receive half of the commissions. Fewel was in debt to Bullock, and the latter wanted him to earn a share of the commissions so that he could meet his obligations. On July 10, 1928, Pratt and Fewel met in Bullock's office to make arrangements for working together. Pratt refused to work with Fewel's associates and insisted that the agreement be with Fewel alone. Fewel maintained that he could not work without his associates. When they finally agreed to work together and to divide the commissions so earned, they went to the office of Pratt who executed the following writing: