May 5, 2015

Post-termination commissions.

Practice point:  The Appellate Division determined that, over the seven-year course of dealing between the parties, plaintiff earned commissions only if and when customers paid on the contracts plaintiff procured. Absent an agreement expressly providing for post-termination commissions, plaintiff, as an at-will commissions salesman, was not entitled to commissions for payments made by customers after his termination.

Student note:  As plaintiff was fully compensated under his agreement, he has no claim for a violation of the Labor Law. Neither does he have an unjust enrichment claim, where defendants merely retained the amounts that they were not obligated to pay for post-termination commissions.

Case:  Linder v. Innovative Commercial Sys. LLC, NY Slip Op 03617 (1st Dept. 2015)

Here is the decision.

Tomorrow's issue:  Summary judgment in a legal malpractice action.