HSG Corporation v. M.M. Inc.
Published: Feb. 23, 2002 | Result Date: Nov. 8, 2001 | Filing Date: Jan. 1, 1900 |Case number: BS071837 Arbitration – $1,255,690
Judge
Court
L.A. Superior Central
Attorneys
Plaintiff
Mark J. Leonardo
(Dordick Law Corporation)
Defendant
Experts
Plaintiff
Steven Sack
(technical)
Facts
The plaintiff, a national manufacturerÆs sales representative, who represented over fifty companies, entered into a
contract with the defendant on March 20, 1999. The contract provided for an initial term of nine months with
an automatic renewal for five years. Termination of the contract required a material breach of the contract.
In December 1999, a dispute arose between the parties regarding the handling of a
client. On Dec. 21, 1999, the defendant notified the plaintiff that it was not renewing the contract.
The defendant then ceased paying commissions after Dec. 31, 1999.
Settlement Discussions
The plaintiff did not make any demand. The defendant offered certain commissions that would, over time, have amounted to approximately $30,000.
Other Information
The plaintiff was awarded $347,647 for gross past commissions, treble damages of $168,808 for the three month period after the termination of the contract, pursuant to Civil Code Section 1738.15 plus $568,503 for future lost commissions, totaling $1,079,951. The plaintiff was also awarded attorneysÆ fees of $135,000 pursuant to Civil Code Section 1738.16, costs and interest. The court confirmed the award totaling $1,255,689. An arbitration was held Louise A. La Mothe. The plaintiff alleged that damages were measured by the gross commissions it would have received under the contract less replacement commissions received from another company that manufactured similar products. The defendant alleged that damages were measured by the net profits plaintiff would have realized from the gross commissions owed. The defendant contended that the award should have only been 20-25 percent of the gross commissions earned or to be earned during the five-year period of the contract, which would have requested plaintiffÆs net profits. The plaintiff was awarded $347,647 for gross past commissions, treble damages of $168,808 for the three month period after the termination of the contract, pursuant to Civil Code Section 1738.15 plus $568,503 for future lost commissions, totalling $1,079,951. The plaintiff was also awarded attorneys' fees of $135,000 pursuant to Civil Code Section 1738.16, costs and interest. The Court confirmed the award totalling $1,255,689. An arbitration was held Louise A. La Mothe.
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