Wood v. Symantec Corp.

872 F. Supp. 2d 476, 2012 WL 368279, 2012 U.S. Dist. LEXIS 13594
CourtDistrict Court, E.D. Virginia
DecidedFebruary 2, 2012
DocketNo. 1:11cv827 (JCC/JFA)
StatusPublished
Cited by7 cases

This text of 872 F. Supp. 2d 476 (Wood v. Symantec Corp.) is published on Counsel Stack Legal Research, covering District Court, E.D. Virginia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Wood v. Symantec Corp., 872 F. Supp. 2d 476, 2012 WL 368279, 2012 U.S. Dist. LEXIS 13594 (E.D. Va. 2012).

Opinion

MEMORANDUM OPINION

JAMES C. CACHERIS, District Judge.

This matter is before the Court on Defendant Symantec Corporation’s (“Defendant” or “Symantec”) Motion for Summary Judgment. [Dkt. 27.] For the following reasons, the Court will grant Defendant’s Motion.

I. Background

This case arises out of a dispute between Symantec and its former employee, Plaintiff David Wood (“Plaintiff” or “Wood”), over alleged unpaid commissions.

A. Factual Background

1. Wood’s Employment at Symantec

Symantec is a computer software company that provides storage and systems management solutions to individual consumers, small businesses, and large organ[478]*478izations. (Def.’s Mem. [Dkt. 28] Statement of Undisputed Facts (“Def.’s Facts”) ¶ 1.) In March 2009, Wood was a Senior Account Manager at Symantec. (Def.’s Facts ¶ 2.) Wood’s job was to sell Symantec products and services to the public sector, including the federal government. (Id.)

At that time, Wood’s compensation was governed by the Fiscal Year 2009 Symantec Sales and Services Compensation Program Guide (the “FY 2009 Program Guide”). (Def.’s Facts ¶ 3.) Sales employees like Wood were paid a base salary as well as commissions based on their performance. (Def.’s Facts ¶¶ 4-5.)

2. The Carahsoft Contract

During his employment, Wood worked on a licensing agreement between Symantec and Carahsoft Technology Corporation (the “Carahsoft Contract”). (Wood Dep. [Def.’s Mem. Ex. 1] at 36:12-37:12.) The Carahsoft Contract was executed on April 1, 2009. (Def.’s Facts ¶ 12.) While the contract was with Carahsoft Technology Corporation, it allowed the United States Army to purchase Symantec products. (Id.) The Carahsoft Contract contained a base year and two option years that could be exercised by the customer. (Def.’s Facts ¶ 13.) During the base year, the Army could use an unlimited quantity of specified Symantec Products. (Def.’s Facts ¶ 16.) The amount due and payable for the base year was approximately $11.1 million. (Def.’s Facts ¶ 15; Wood Dep. at 41:7-18.) The Army was contractually committed to the base year only, and was not required to exercise the option years. (Def.’s Facts ¶ 14.) Thus, in order for Symantec to be paid beyond the amount due and payable for the base year, the Army would have to exercise the option years. (Id.)

In September 2008, Wood proposed a deal containing a contractual commitment close to $50 million, and which set forth the possibility of external financing. (Def.’s Facts ¶ 17.) In order to obtain external financing, Symantec would have to pay a financing company or reseller a fee to finance the deal. (Id.) However, a multi-year deal with external financing eventually became unworkable. (Def.’s Facts ¶ 18.) Wood continued to lobby for a deal with external financing, however, because it would increase the Army’s contractual commitment, and hence increase his commissions. (Def.’s Facts ¶¶ 19-20.) Wood eventually advocated a deal with a base year of approximately $12 million and an unlimited license, recognizing the high likelihood that the Army would exercise the option years. (Def.’s Mem. Ex. 10.) The Carahsoft Contract was ultimately executed without external financing. (Def.’s Facts ¶ 25.)

3. The FY 2009 Program Guide

Wood was a “Plan Participant” as defined in the FY 2009 Program Guide. (Opp. [Dkt. 33] Additional Facts (“PL’s Facts”) ¶ 3.) As a Plan Participant, Wood was assigned to a specific territory and given a quota. (Def.’s Facts ¶ 4; FY 2009 Program Guide [Def.’s Mem. Ex. 2] §§ 2.2, 7.1.) Wood’s commissions were based on eligible products and services sold within his territory and for which he carried a quota. (Def.’s Facts ¶ 4; FY 2009 Program Guide §§ 1.5, 3.1, 3.2.)

The FY 2009 Program Guide provided that “[c]ommissions are earned when Symantec receives full payment from the customer unless the deal falls within the Windfall Clause ... in which case there are no earnings until a decision is made by Symantec regarding the windfall.” (Def.’s Facts ¶ 7; FY 2009 Program Guide § 1.6.) The guide further states that “[o]nly transactions which have been forecasted, approved and invoiced are eligible for Commissionable Bookings Credit.” (Def.’s Facts ¶ 7; FY 2009 Program Guide § 1.6.) [479]*479Commissionable Bookings Credit is in turn defined as the amount credited to the territory and against the quota for commission purposes. (Pl.’s Facts ¶ 7; FY 2009 Program Guide § 1.5). Section 4 of the FY 2009 Program Guide further addresses Commissionable Bookings Credit, and provides in part that:

An order for both products and/or services must be a binding commitment on both the third-party (customer or partner) and Symantec. No caveats, cancellation clauses, Availability of Funds (AOF) clauses (which must be immediately billable on standard payment terms)[,] non-standard payment terms, contingencies, acceptance clauses, or provisions are allowed without prior approval of the Geography Senior Vice President and Geography Finance Controller.

(Def.’s Facts ¶ 7; FY 2009 Program Guide § 4.8.) Section 4.11 reiterates that “[t]he appropriate Geography Senior Vice-President and Geography Finance Controller must approve all nonstandard payment terms.” (Def.’s Facts ¶ 7; FY 2009 Program Guide § 4.11.)

Symantec reserved the right “to amend the Program Guide and related policies and procedures prospectively or retroactively with or without prior written notice” and “at its complete discretion.” (Def.’s Facts ¶ 7; FY 2009 Program Guide § 2.3.) Symantec also reserved the right to “make changes in Program Guide eligibility at any time” and to “modify at its complete discretion Quotas based on a number of conditions....” (Def.’s Facts 117; FY 2009 Program Guide §§ 2.4, 2.5.) Modifications to the FY 2009 Program Guide required “the prior written approval of the Executive Compensation Committee, made up of Executive Compensation Committee, made up of Executives from Sales, Services and Finance Organizations.” (Def.’s Facts ¶ 7; FY 2009 Program Guide § 2.7.)

Wood received the FY 2009 Program Guide in May 2008 and accepted its terms. (Def.’s Facts ¶ 8.)

4. Wood’s Compensation on the Carahsoft Contract

Pursuant to the FY 2009 Program Guide, Wood was paid commission based on the Army’s contractual commitment on the Carahsoft Contract, i.e., the approximately $11.1 million due and payable for the base year. (Def.’s Facts ¶ 31.) Wood met with one of his supervisors, Jim Russell, about compensation in April 2009. (Def.’s Facts ¶ 34.) Russell was a vice president responsible for Symantec’s public sector business unit until October 2009. (Id.) Wood sent Russell a memo he drafted concerning compensation on the Carahsoft Contract (the “compensation memo”). (Def.’s Mem. Ex. 13.) When Wood and Russell met, they discussed two courses of action: (1) an adjustment to Wood’s quota for fiscal year 2010, and (2) paying the team “off plan.” (Def.’s Facts ¶ 35; Def.’s Mem. Ex. 14.)

Wood also spoke with another supervisor, David Connor, about his compensation. (Def.’s Facts ¶ 37.) In May 2009, Wood sent Connor an e-mail, which included the compensation memo as well as three proposals for how the sales team could be compensated. (Def.’s Facts ¶ 38; Def.’s Mem. Ex.

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872 F. Supp. 2d 476, 2012 WL 368279, 2012 U.S. Dist. LEXIS 13594, Counsel Stack Legal Research, https://law.counselstack.com/opinion/wood-v-symantec-corp-vaed-2012.