Facts

Plaintiff Richard Melbye worked for defendant Accelerated Payment Technologies Inc. (APT) and its predecessor (CAM) as a salesman. Melbye was compensated mainly on a commission-basis for marketing the software program, "X-Charge," used for processing credit cards from computerized cash registers. Melbye stated he had entered into an oral contract with the former CAM CEO, under which he was to be compensated with X-Charge commissions in the event of termination without cause.

In 2008, after CAM was purchased by a private equity firm and renamed APT, Melbye was terminated without cause. APT refused to pay any further commissions to Melbye, and Melbye filed suit.

PLAINTIFFS' CONTENTIONS:
Melbye alleged breach of contract for failure to pay post-termination residual commissions. He further alleged breach of implied covenant of good faith and fair dealing, unfair competition, failure to pay due wages, and other California Labor Code violations.

DEFENDANT'S CONTENTIONS:
APT motioned for summary judgment, contending there was no evidence supporting an implied agreement to pay Melbye post-termination commissions.

Result

The jury unanimously found APT liable for breach of an oral or implied-in-fact contract as well as breach of the implied covenant of good faith and fair dealing, awarding Melbye $6,225,000 in damages. The case is currently on appeal.