Daup v. Tower Cellular, Inc.

737 N.E.2d 128, 136 Ohio App. 3d 555, 17 I.E.R. Cas. (BNA) 300, 2000 Ohio App. LEXIS 295
CourtOhio Court of Appeals
DecidedFebruary 3, 2000
DocketNo. 99AP-258.
StatusPublished
Cited by27 cases

This text of 737 N.E.2d 128 (Daup v. Tower Cellular, Inc.) is published on Counsel Stack Legal Research, covering Ohio Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Daup v. Tower Cellular, Inc., 737 N.E.2d 128, 136 Ohio App. 3d 555, 17 I.E.R. Cas. (BNA) 300, 2000 Ohio App. LEXIS 295 (Ohio Ct. App. 2000).

Opinion

*558 Deshler, Judge.

This is an appeal by plaintiffs, Jeff Daup and Shawn Owens, from a judgment of the Franklin County Court of Common Pleas granting summary judgment in favor of defendants, Colin S. LeVeque and Tower Cellular, Inc.

This action was initiated after plaintiffs were terminated in October 1996 from their employment with defendant Tower Cellular, Inc. (“Tower Cellular”). Defendant LeVeque is the president of Tower Cellular. In the early 1990s, Tower Cellular formed an agency relationship with Cellular One (which later became Airtouch Cellular). Pursuant to the parties’ sales referral agreement, Tower Cellular received a commission for signing up customers for Cellular One service agreements.

Tower Cellular employed a staff of sales personnel, sometimes referred to as account executives. Plaintiffs, Daup and Owens (collectively “plaintiffs”), were initially hired to work as account executives and they were compensated in the form of commissions. Plaintiffs were also eligible for certain performance bonuses. Later during their employment, plaintiffs also received payments in the form of “overrides” and “residuals.”

In general, the payment of commissions was based on individual sales by an account executive; the amount of commission was determined by the rate plan and number of years for which a customer signed up, minus any “giveaways” an account executive might offer the customer. A number of different bonuses were available, including bonuses based on the number of “activations” initiated by an account executive, as well as individual store bonuses, based on the number of sales generated by a particular store.

“Overrides” were paid to managers based on sales by personnel working under a particular manager. Overrides were calculated based on an amount multiplied by “the number of sales” in a group. Bonuses and overrides were categorized as “additional compensation” above the standard commission.

The term “residual” refers to “a percentage of a customers’ revenue.”' Customer revenue included a customer’s monthly long-distance charges. Cellular One paid Tower Cellular a percentage of the residuals on a monthly basis, ranging “anywhere from * * * 2 percent to 7 percent.” The percentage was based on the number of customers (customer base) and the deactivation rate (i. e., a lower deactivation rate would result in a higher residual).

In 1995, Tower Cellular had three stores, located in Westerville, Worthington, and downtown Columbus. At that time, LeVeque managed the Worthington office, consisting of not only a sales office but also the corporate headquarters.

*559 Defendant Daup was hired in March 1995 by Tower Cellular. When he first began his employment, Daup worked at the Westerville store as an account executive and he was compensated on a commission basis. In June 1995, Daup transferred to the office in Worthington.

LeVeque eventually discussed with Daup the possibility of Daup operating his own store. As a result of these discussions, a fund was created whereby thirty dollars override payments were set aside for the purpose of setting up an independent store for Daup to operate as a sub-agency with Tower Cellular. The override payments resulted from sales by Daup and the employees working under Daup’s management.

Daup subsequently contacted a friend, defendant Owens, about working at Tower Cellular. Owens began working at Tower'Cellular on July 16, 1995. He became an account executive and was paid on a commission basis. Daup anticipated that Owens would be his partner in the new business.

Because of favorable sales performance at the Worthington store, LeVeque spoke with Daup about abandoning the idea of opening a new store; instead, LeVeque wanted Daup and Owens to concentrate on developing business at the Worthington store. Daup and Owens had recruited a number of sales personnel at the time and were involved in managerial duties of sales people. As a result of these discussions, Daup and Owens each gave themselves the title of vice-president. Further, instead of setting aside the thirty dollar overrides earmarked for the new store, portions of the fund were paid “up-front” or directly to Daup and Owens. According to LeVeque, the change came about because “[w]e agreed that everybody was better off having them stay in the Worthington location.”

LeVeque also agreed to pay Daup and Owens residuals. Specifically, LeVeque agreed to pay Daup and Owens two percent of Tower Cellular’s residuals received from Cellular One (Daup and Owens split their income, each receiving one percent). Plaintiffs were not to begin being paid the residuals until one year later.

In October 1996, LeVeque informed both Daup and Owens that they were being terminated. LeVeque indicated that the reason for the termination was his fear that the company might be sued for sexual harassment based on office conduct by Daup and Owens.

On September 29, 1997, plaintiffs filed a complaint against defendants, alleging that defendants had breached an express or implied contract between plaintiffs and Tower Cellular. Plaintiffs alleged that, due to the breach of contract, they were entitled to residuals, finder’s fees, and other compensation based on each new customer plaintiffs brought to Tower Cellular and the amount of telephone *560 services purchased by sales customers. Plaintiffs’ complaint also included causes of action for quantum meruit, intentional infliction of emotional distress, fraudulent misrepresentation, defamation, intentional procurement of breach of contract, and promissory estoppel.

Defendants filed an answer on November 6, .1997. On October 30, 1998, defendants filed a motion for summary judgment as to all of plaintiffs’ claims. Plaintiffs filed a memorandum contra defendants’ motion for summary judgment, and defendants subsequently filed a reply memorandum.

By decision rendered on January 20, 1999, the trial court granted defendants’ motion for summary judgment. The decision of the trial court was journalized by judgment entry filed January 21,1999.

On appeal, plaintiffs set forth the following assignment of error for review:

“The trial court erred in granting defendants’ motion for summary judgment as genuine issues of material fact exist such that defendants are not entitled to judgment as a matter of law.”

Under their single assignment of error, plaintiffs contend that the trial court erred in granting summary judgment as to plaintiffs’ claims for breach of an express or implied contract, unjust enrichment, fraud, and tortious interference with contract.

In general, a motion for summary judgment will be granted only where there is no genuine issue of any material fact and it is clear that the moving party is entitled to judgment as a matter of law. Civ.R. 56(C). Further, summary judgment shall not be rendered unless it appears from the evidence that “reasonable minds can come to but one conclusion and that conclusion is adverse to the party against whom the motion for summary judgment is made.” Id. In reviewing a motion for

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Bluebook (online)
737 N.E.2d 128, 136 Ohio App. 3d 555, 17 I.E.R. Cas. (BNA) 300, 2000 Ohio App. LEXIS 295, Counsel Stack Legal Research, https://law.counselstack.com/opinion/daup-v-tower-cellular-inc-ohioctapp-2000.