Takagi & Associates Inc [2006] GUSC 4; 2006 Guam 04 (17 March 2006)

IN THE SUPREME COURT OF GUAM

TAKAGI & ASSOCIATES, INC.,
Plaintiff-Appellee,

v.

INTERNATIONAL INSURANCE UNDERWRITERS,
Defendant-Appellant.

Supreme Court Case No.: CVA04-026
Superior Court Case No.: CV2010-00

OPINION

Filed: March 17, 2006

Cite as: 2006 Guam 4

Appeal from the Superior Court of Guam
Argued and submitted on August 17, 2005
Hagåtña, Guam

Appearing for the Defendant-Appellant: Thomas M. Tarpley, Jr., Esq. Tarpley & Moroni, LLP Bank of Hawaii Bldg. Ste. 402, 134 W. Soledad Ave. Hagatna, GU 96910

Appearing for the Plaintiff-Appellee: David W. Dooley, Esq. Tim L. Roberts, Esq. Dooley, Roberts & Fowler, LLP Ste. 201, Orlean Pacific Plaza 865 S. Marine Corps Dr. Tamuning, GU 96913

BEFORE: F. PHILIP CARBULLIDO, Chief Justice; FRANCES M. TYDINGCO-GATEWOOD, Associate Justice; ROBERT J. TORRES, JR., Associate Justice.

CARBULLIDO, C.J.:

[1] Defendant-Appellant International Insurance Underwriters, Inc. (“IIU”) appeals from the trial court’s Findings of Fact and Conclusions of Law following a de novo appeal of a small claims trial to the bench. The trial court held that a broker was obligated under the terms of their contract to return a commission it earned to the insurer because the insurance premium had been returned by the insurer to the insured. We reverse.

I.

[2] International Insurance Underwriters,^[1] a broker, was selling policies for an insurer, Plaintiff-Appellee Takagi & Associates, Inc. (“Takagi”) and its underwriter, Dai-Tokyo Fire & Marine Insurance Co., Ltd. In 1995, IIU arranged for the sale of a Takagi worker’s compensation policy to Pacific Drilling, Inc. ( “PDI”). Takagi provided worker’s compensation insurance for PDI for 1995, 1996 and 1997.

[3]