Shipley v. Baillie

The majority holds that the authorized employment of a subagent by a general agent does not subject the principal to contractual liability to the subagent, overruling Equitable Life Assurance Co. v. Brobst, 18 Neb. 526, 26 N.W. 204 (1886). Brobst held that “the acts of a general agent with reference to the subject of the agency will bind his principal.” Id. at 528, 26 N.W. at 204. Since I do not believe that Brobst should be so lightly overruled, I respectfully dissent.

Kemper’s agreement with PDS provided PDS with the express authority to hire subagents to sell insurance policies for Kemper.…