Legal Question in Business Law in Indiana

$1.8 Million in Sales Compensation

I was recruited by a manufacturer that had no presence in retail chain stores and they wanted me to take their sales to then next level in three years so they could sell the company.

I was on base pay and 1% commission on all sales. In three years I made them $55 million and they sold the company to an investment firm for $180 million while I was under contract.

Prior to the sale of the company the “President” contacted me and told me that the deal wouldn’t go threw, unless I could make it happen and work with the investment group and contact all my chain store buyer’s prior to the closing of the sale.

After the deal went threw they awarded me $1k for profit sharing from the sale of the company for $180 million.

My question is since I was under contract for 1% of commissions on sales; can I be entitled to 1% of the profits from the sale of the said company? That would be about $1.8 million dollars.

When the new company management took over they forced me to sign a new employment contract and non-compete agreement. Shortly there afterwards, I was terminated for “Lack of Sales” even though my sales were up 47% for the year end.

This about sums it up, can I be entitled to $1.8 million or 1% for making this deal go threw?


Asked on 11/23/05, 1:51 pm

3 Answers from Attorneys
Charles Lawler Clark Hill PLC

Re: $1.8 Million in Sales Compensation

You may have a potential claim. You need to get an attorney to review the documents. Furthermore, without reading any documents, I would think it would be hard to claim 1% of the total sales price. However, all you need is a colorable claim to make the allegations in a complaint. Suffice to say, you need to contact an attorney with litigation experience to evaluate your claim. You may also have a claim for wrongful termination or tortious interfence with contract/business relationship.

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Answered on 11/23/05, 2:04 pm
Don Darnell Darnell & Lulgjuraj, P.C.

Re: $1.8 Million in Sales Compensation

It sounds like you may have something, but I would first need to see the documents you have and discuss your relationship with the retailers. You may contact me directly to arrange a meeting if you would like to discuss this matter.

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Answered on 11/23/05, 3:09 pm
Zedrick Braden III Ainsworth & Associates PC

Re: $1.8 Million in Sales Compensation

Hello. In my opinion you are entitled to the

percentage of the ocmpany's profits. Several

years ago I handled a case similar to your situa-

tion. Filing a lawsuit for breach of contract, in my opinion, is the way to go. I will be happy

to answer any additional questions that you might

have.

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Answered on 11/23/05, 9:29 pm


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