McDonald v. Scitec, Inc.
Annotate this CasePlaintiff entered into a commission agreement with Company in 2002 in which Company agreed to pay Plaintiff a commission when Company sold its products to contacts that Plaintiff introduced to Company. Starting in 2004, Company began paying Plaintiff commissions for its sales to a certain contact (Avaya). Company terminated the agreement on the day that Plaintiff served it with a complaint claiming that Company owed him commissions on sales it made to another company. Company continued to sell to Avaya after terminating the agreement but did not pay Plaintiff any commissions on those sales. Plaintiff subsequently amended his complaint, and the case was tried to a jury on the issue of whether Plaintiff was due commissions resulting from Company's post-termination sales to Avaya. The trial court entered judgment for Company. The Supreme Court vacated the judgment of the trial court and remanded for entry of a judgment in favor of Plaintiff, holding (1) the commission agreement unambiguously required Company to pay commissions to Plaintiff on sales it made to Avaya after Company unilaterally terminated the agreement; and (2) therefore, Defendant was entitled to judgment as a matter of law on his breach of contract claim.
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