Claytor v. Computer Associates International, Inc.

262 F. Supp. 2d 1188, 2003 U.S. Dist. LEXIS 7796, 2003 WL 21048470
District Court, D. Kansas·Decided May 7, 2003·No. 02-2194-JWL·Published·Cited by 3 cases

Opinion

MEMORANDUM & ORDER

LUNGSTRUM, District Judge.

Plaintiff filed suit against defendant, his former employer, alleging that defendant failed to pay him certain commissions allegedly owed to him. Plaintiff seeks to recover the unpaid commissions under breach of contract and conversion theories. In addition, plaintiff seeks statutory damages pursuant to K.S.A § 44-342 for defendant’s failure to pay him earned commissions. Finally, plaintiff asserts a claim for wrongful discharge based on defendant’s termination of plaintiffs employment in October 2001.

This case is presently before the court on defendant’s motion for summary judgment (doc. #48) on each of plaintiffs claims. As set forth in more detail below, the motion is granted with respect to plaintiffs breach of contract claim regarding the Century Business Systems transaction and with respect to plaintiffs claims for conversion, statutory damages and wrongful discharge. The motion is denied with respect to plaintiffs breach of contract claim regarding the DST transaction. 1

I. Facts

The following facts are either uncontro-verted or related in the light most favorable to plaintiff, the nonmoving party. Plaintiff worked for defendant as a sales representative from October 1, 1996 through October 31, 2001 when defendant terminated plaintiffs employment. Defendant is in the business of designing, developing and licensing computer software products and selling support services for those products. As a sales representative, plaintiffs compensation consisted, in part, of commissions paid on software license agreements. In this case, plaintiff claims that defendant failed to pay him commissions owed to him with respect to two separate license agreements that were executed by defendant in December 1999 and June 2001, respectively.

Defendant’s sales representatives are either assigned to a specific product area in a specific geographic territory or assigned to a strategic accounts group (“SAG”). If the representative is assigned to one of defendant’s three product areas (enterprise management; information management; and mainframe), then that representative typically services a number of *1192 defendant’s clients within the representative’s assigned territory. If the representative is assigned to an SAG account, then that representative typically services all three product areas for one specific client.

For each fiscal year, defendant maintained a Sales Compensation Plan that governed the payment of commissions to its sales representatives. Those Sales Compensation Plans incorporated by reference an individualized Wealth Enabling Plan (“WEP”) for the sales representative based on the particular product area or SAG account to which the representative was assigned. The individualized WEP sets forth the representative’s product group sales assignment (or SAG account assignment), base salary, annual quota and other information for that particular sales representative during the relevant time period. According to defendant, a sales representative may have only one WEP in effect at any time.

From April 1, 2000 through March 31, 2001 (ie., defendant’s fiscal year 2001 or “FY 2001”), DST was one of defendant’s clients and, more specifically, was one of defendant’s SAG accounts. Throughout FY 2001, plaintiff was the SAG representative for DST and worked exclusively with that client. In February 2001, plaintiff worked on putting together a deal with DST that would have sold more than $30 million in products and services to DST over the course of 7 years. Defendant rejected the proposed sale, stating that it was not interested in pursuing sales resembling the one that plaintiff had structured. Thus, activity on this sale was suspended.

Beginning on April 1, 2001 (FY 2002), DST was no longer an SAG account, although plaintiff avers that defendant continued treating DST as an SAG account. Moreover, plaintiffs WEP executed at the beginning of FY 2002 assigned plaintiff to the SAG group and plaintiff continued to work on the DST account. Soon after the start of FY 2002, defendant reassigned plaintiff to the information management (“IM”) product sales group and plaintiff received a new WEP for that group. However, plaintiff avers that he continued to work as a SAG representative for DST at defendant’s express direction, despite the fact that he was formally assigned to the IM group. At some point thereafter, plaintiff requested that defendant reassign him from the IM group to the enterprise management (“EM”) product sales group. Defendant did so and plaintiff received a new WEP for the EM group. According to plaintiff, he continued to service the DST account in all three product areas at defendant’s specific request.

In mid-June 2001, defendant advised plaintiff that they were interested in pursuing the sale that plaintiff had structured in February 2001 and requested that plaintiff contact DST to reactivate negotiations. According to plaintiff, negotiations on the sale resumed due to his efforts and he was responsible, in large part, for closing the transaction in June 2001. Total commissions from the sale were $308,000; defendant paid plaintiff about $15,000 as a “discretionary” payment and contends that plaintiff was not entitled to any payment at all. Plaintiff contends that he was entitled to the full $308,000.

In December 1999, defendant entered into a license agreement with a company named Century Business Systems. That agreement did not close in plaintiffs geographic territory, but in the Ohio sales territory. Nonetheless, plaintiff was apparently instrumental in structuring the transaction and selling the deal to Century Business Systems. In recognition of plaintiffs efforts, one of defendant’s senior vice presidents, Michael Saracini, requested via e-mail to another senior vice president, Mark Guido, that Mr. Guido consider giv *1193 ing plaintiff 50 percent of the total commissions on the transaction. Mr. Guido, via e-mail, agreed to the request and the email exchange was then forwarded by Mr. Saracini to plaintiff, with the instruction to “wrap up” the transaction in October 1999, although the deal did not close until December 1999. For whatever reason, defendant did not give plaintiff 50 percent of the commissions on the Century Business Systems transaction; rather, defendant gave plaintiff roughly one-third of the total commissions on the transaction. Plaintiff alleges that he is entitled to additional commissions on this sale.

Additional facts will be provided as they pertain to plaintiffs particular claims.

II. Summary Judgment Standard

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Claytor v. Computer Associates International, Inc., 262 F. Supp. 2d 1188, 2003 U.S. Dist. LEXIS 7796, 2003 WL 21048470 (D. Kan. 2003).

262 F. Supp. 2d 1188 (Claytor v. Computer Associates International, Inc.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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