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Employment Law
Failure to Pay
Commission

Superior Electronics Group v. David Badoud

Published: Mar. 13, 1999 | Result Date: Nov. 4, 1998 | Filing Date: Jan. 1, 1900 |

Case number: SC021002 Verdict –  $81,682

Judge

Joe D. Hadden

Court

Ventura Superior


Attorneys

Plaintiff

Eric B. Kingsley
(Kingsley & Kingsley APC)


Defendant

John Yanchek

G. Michael Michael Graham


Facts

This lawsuit arose out of defendant's appeal form a Labor Commission award of $24,182.28. The plaintiff sought damages for failure to pay commissions and bonuses in 1996 ($19,945.50), commission in 1997 ($15,719) Section 203 of the Labor Code waiting penalties ($14,766.33), unreimbursed expenses ($466.75), prejudgment interest and attorneys fees.

Settlement Discussions

The plaintiff made a demand for $65,000 before trial, The defendant made an offer for $1,550.35, raised to $15,000 on the morning of trial.

Damages

Failure to pay wages, commissions and expenses. The plaintiff also claimed penalties pursuant to Labor Code º203 and interest from the date of termination.

Other Information

Judge Hadden issued his decision from the bench at the conclusion of closing arguments. He found that defendant's evidence, two witnesses currently employed by the company uncompelling and further found that defendant's inability to produce documentary evidence to prove orders had in fact been canceled was troubling. He found the plaintiff was entitled all commissions claimed for 1996 ($9,670.50) plus awarded plaintiff the $9,375 bonus for 1996. He determined the forfeiture clause in the contract, (which stated if plaintiff quit or was fired all commission not yet paid were to be forfeited) to be unconscionable. This amounted to $15,719.07 for 1997 commissions. The defendant conceded $466.75 in expenses were due. Next, judge Hadden awarded $14,766.33 in º203 penalties which represented 30 days of plaintiff's average daily wage in 1996 and 1997 of $492.21. Added to the judgment of $49,997.65 was prejudgment interest from the date of termination on March 28, 1997 to entry of judgment on Dec. 21, 1998 or $8,670.90. In addition, pursuant to º98.2 of the Labor Code plaintiff was entitled to attorneys fees of $22,477.50 and costs. The defendant filed a motion to tax costs. The defendant requested a trial de novo.

Length

two days


#80273

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