Man sues insurance agency over lost commission

By Kelly Holleran | Oct 16, 2012

An insurance agent claims his former employer has breached its contract with him after it has failed to pay him 20 percent in commission on policies he sold. 

Mahesh Makecha doing business as Apex Insurance and Professional Services filed a lawsuit Sept. 24 in Jefferson County District Court against Santa Fe Auto Insurance Co.

In his complaint, Makecha claims he was selling auto insurance policies for Santa Fe. In exchange for any policies sold, Santa Fe agreed to compensate Makecha 20 percent of all the premiums, according to the complaint.

After two years of a successful stint at selling Santa Fe policies, Makecha was banned from accessing Santa Fe’s web-based computer system on Sept. 24, 2010, the suit states.

Thereafter, Santa Fe informed Makecha that it was terminating him from employment because of excessive losses resulting from policies Makecha sold, the complaint says.

“While Santa Fe was within its rights when it terminated its relationship with plaintiff, Santa Fe breached the agent agreement by ceasing payment of all commissions owed to plaintiff for premiums collected under active policies sold by plaintiff,” the suit states.

Even though Makecha has requested his commission payments from Santa Fe, it has refused to pay him, the complaint says.

Makecha alleges breach of contract and unjust enrichment against Santa Fe.

He seeks actual and consequential damages, plus a disgorgement of “ill-gotten gains,” attorney’s fees, costs, pre- and post-judgment interest and other relief the court deems just.

Dax O. Faubus, Joshua P. Davis and Mitchell A. Greene of Faubus and Scarborough in Houston will be representing him.

Judge Bob Wortham, 58th District Court, has been assigned to the case.

Case No. A193-205

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