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Kenneth D. Gack

By Pat Broderick | Oct. 17, 2013

Oct. 17, 2013

Kenneth D. Gack

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JAMS San Francisco Specialties: complex commercial, catastrophic injury, medical malpractice, judicial reference, construction defect


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A dispute between an independent U.S. sales representative and an Asian-based electronic components manufacturer had been raging for four years and the parties were still poles apart, Gack said.


The claims concerned outstanding commissions that the representative believed he was due.


"Each of them came with very strong convictions and negative perceptions of their opponent," Gack said.


On the plaintiffs side, "The U.S. sales rep had a perception that the Asian-based manufacturing entity had attempted to use its very substantial economic power to grind him down and resolve the case for much less than what he felt he was entitled to under contractual arrangement," Gack said.


On the defendant's side, "The foreign entity brought over people who had a perception that the sales rep was making claims to commissions that he wasn't due, and that the contract was far less precise," he added.


Key to the dispute: If the commission due by the manufacturer was willfully withheld, the California civil code permits a trebling of damages, Gack said.


"The challenging part of the case had to do with so much ill will between them over a long period of time," he added. "It's not only dealing with what commission is due, but more in dealing with an accumulated negativity between them."


So, Gack had to find a way to keep the parties focused, he said, adding, "I can't rewrite history."


What he could do, Gack said, was to lead the plaintiff away from a desire to punish the defendant and become more focused on the underlying merits of the case.


"It's about perception versus reality - getting folks to rethink the nature of the problem," Gack added.


With a trial date looming, he said, "We had to find a balance in managing the problem."


After all of that rancor, Gack did just that, resolving the dispute in a one-day session.

- Pat Broderick

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