Facts

Plaintiff Andreas C. Weaver worked for Gateway Business Bank as its small business administration ("SBA") products manager from May 2001 to August 2006. This case concerned the commissions allegedly owed to Weaver by the bank for loans that Weaver claimed were personally generated by him for the bank.

On or May 21, 2001, the parties entered into a letter agreement, dated May 17, 2001 ("the letter agreement"), which generally set forth Weaver's duties, generally described his salary and benefits, and described the commissions that Weaver would earn on loans generated by other business banking officers hired and trained by Weaver once these banking officers became fully trained and self-sufficient.

PLAINTIFF'S CONTENTIONS:
Weaver contended that during his employment period, he was paid a salary and a two percent commission on loans that he generated for the bank. After he resigned, the bank decided that it no longer wanted to pay him pursuant to their long-standing agreement. Prior to Gateway hiring Weaver to be Gateway's senior vice president, SBA product manager to head up its SBA loan department, Gateway had no SBA loan department.

Weaver's duties and responsibilities included the following: To function as the person-in-charge of the bank's SBA products; to develop quality operations that provide the bank with a quality and well-managed SBA loan portfolio; to provide establish internal SBA systems for the bank; to attract and train business development officers; to train other business personnel to market the bank's SBA products; to maintain the SBA servicing and portfolio loans in a professional and efficient manner consistent within the policy and commercial execution of SBA lending standards; and to strive for overall department profitability by the end of December 2002.

The letter agreement referenced the business plan, which is an integral part of the employment arrangement between the parties and provides additional details regarding Weaver's compensation, including the two percent commission schedule. In addition to the compensation provisions in the letter agreement, Gateway and Weaver agreed that Weaver would be paid two percent or 200 basis points on all loans requiring his direct involvement, less any commission or referral fee paid to any other broker or business development officer. The two percent commission schedule was set forth in a business plan dated May 14, 2001.

Gateway and Weaver operated under the two percent commission schedule described above from Weaver's first day of employment at Gateway until his resignation from the bank effective Sept. 30, 2006.

During this period of time, nearly 100 percent of Weaver's commission were paid under the two percent commission schedule, whereby Weaver's commission was two percent of the loan amount, less any commission paid to a referring broker or Gateway employee who referred the borrower to Weaver. In all Weaver generated not less than 156 loans over five years in which he was paid under the two percent commission schedule.

Weaver contended that the letter agreement alone did not completely set forth his compensation package.

DEFENDANTS' CONTENTIONS:
The bank took the position that, as to certain loans, the bank was only required to pay Weaver .2 percent and they had in fact done so. Accordingly, the bank owed nothing to Weaver.

Settlement Discussions

Confidential

Damages

Weaver contended that he was owed approximately $99,000 in unpaid commissions, interest in the amount of $20,000 and attorneys' fees in the amount of $40,000 for a total of approximately $160,000.

Result

The case settled at an MSC the week before trial for $82,500.