Gale Smith & Co. v. The Governors Club

This is a breach of contract case. The defendant real estate developer developed a golf club. The plaintiff insurance broker entered into an insurance binder with the manager of the golf club. The "master" binder covered five separate properties with which the manager was involved. The binder listed another of the manager's entities as the insured. The manager was later terminated by the defendant and a new management company was hired to manage the golf club. The insurance broker then issued a separate policy naming the defendant as the insured and sent invoices for the unpaid premiums to the new management company. The management company declined to pay the premiums. The insurance broker then filed suit against the defendant. The trial court entered a judgment for the insurance broker for all unpaid premiums due under the insurance binder, plus interest. We affirm, finding that manager had the apparent authority to enter into an insurance contract and that there was a contract for insurance between the parties.