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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