CORNELL COMPUTER CORP., APPELLANT,
v.
NINA DAMION, APPELLEE

Fla. 3d DCA | 1988-09-06
Nos. 87-26, 87-583
Before NESBITT, DANIEL S. PEARSON and JORGENSON, JJ.
530 So. 2d 497 Florida District Court of Appeal, Third District (1988) Caution
Cited by 8 cases

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Holding

The court held that an employee is generally entitled to earned commissions upon termination unless the contract states otherwise or industry custom dictates, and the trial court did not err in finding commissions were earned.


Headnotes

[1] An employee generally does not forfeit commissions already earned under a contract by reason of termination of employment, unless the contract provides otherwise, require…

[2] A trial court may interpret an oral employment contract to include post-termination commission payments if the services necessary to earn the commissions were performed p…

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Facts & Procedural History

Damion, a salesperson, sued her former employer, Cornell Computer Corp., for post-termination commissions based on an oral employment contract. The co…

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Opinion of the Court
JORGENSON, Judge.

JORGENSON, Judge.

Cornell Computer Corp. brings consolidated appeals from a final judgment granting Nina Damion post-termination commissions and an agreed final judgment awarding Damion attorney’s fees and costs. We affirm.

Cornell hired Damion as a salesperson in June, 1982, under an oral contract of employment. Damion received her salary in the form of a 10% commission on the gross fee billed and received by Cornell for each computer technician Damion placed with a corporate client. The parties never discussed whether Damion would be entitled to post-termination commissions. During the course of her employment, Damion placed computer technicians with four corporate clients. In March, 1985, as the result of an internal transfer at Cornell, Damion had no further contact with three of the corporate clients. Whether she resigned or was fired is a matter of disagreement between the parties, but in any event Damion’s employment with Cornell ended on May 31, 1985.

Damion sued Cornell for post-termination commissions. She alleged that by placing the computer technicians she had fully performed the services for which she was hired. She further alleged entitlement to a 10% commission on the monies received by Cornell for the entire term worked by each of the technicians she had placed, notwithstanding her termination. The action was heard non-jury.

The trial court specifically found that a valid employment contract existed whereby Cornell was to pay Damion “a commission of 10% of every dollar received by [Cornell], for work done by data processing technicians placed by [Damion], for as long as the technicians worked on the account.” The trial court entered final judgment for Damion in the amount of $71,161.03 for commissions due her. By separate order, the trial court entered an agreed final judgment awarding Damion an attorney’s fee of $25,000 and court costs.

Cornell asserts on appeal that the trial court committed reversible error by supplying a term in the oral contract that would require Cornell to pay post-termination commissions, where the contract itself was silent regarding such payments. Cornell also contends that any ambiguity in the contract should have been resolved by reference to the customs and usage of oral employment contracts for salespersons.

It is the general rule that [o]rdinarily an employee does not forfeit his right to commissions, already earned under his contract, by the termination of his employment, as by his discharge, unless the contract of employment provides otherwise or provides for the performance of services as an entirety, or unless there is a recognized custom in the business that such right will terminate with the employment.

56 C.J.S. Master and Servant § 92 (1948). The issue before this court is whether Damion earned her commissions prior to termination and, if so, whether any of the exceptions to the general rule apply. Although the nature of the contract was heavily disputed at trial, sufficient evidence was adduced to support the trial court’s interpretation that Damion labored under a placement contract, not a service contract, and that she earned commissions upon placing technicians.

As to the exceptions under the rule, it is undisputed that the oral contract of employment is entirely silent on the question of Damion’s right to post-termination commissions. Nor did the contract provide for the performance of services as an entirety, as was the case in Cueto v. John Allmand Boats, Inc., 334 So. 2d 30 (Fla. 3d DCA) (employment agreement by its plain language required salesman to travel, service, and receive commissions until cancelled by 30 days’ notice; therefore, trial court construed agreement to be service contract), cert, denied, 341 So. 2d 290 (Fla.1976), an opinion relied upon by Cornell. Cf. Av-Med, Inc. v. French, 458 So. 2d 67 (Fla. 3d DCA 1984) (under oral employment contract, salesperson earned commissions upon enrollment of insurance clients, subject to condition subsequent of servicing; failure to service would result only in reasonable setoff in employer’s favor on commissions due).

Finally, while “the best guide for the courts to follow in interpreting the contractual obligation of the parties is the usages of the particular business involved,” Trent v. Channel 10, WPLG-TV, Post-Newsweek Stations, Florida, Inc., 309 So. 2d 631, 634 (Fla. 3d DCA 1975), we cannot say that the trial court erred in discounting the testimony offered by Cornell’s expert witness. The witness testified that commissions are not paid outright, upon placement of a technician, implying that a salesperson’s job entails more than mere placement.

However, the witness also testified that the profit margin in the industry is too slender to pay a full placement fee up front.

The testimony established that computer technicians tend to be “of the gypsy variety,” disinclined to stay in one job for very long, and so “we would be foolish to pay those commissions on advance, only to have to try to get them back from the salesperson.” Having testified that it is definitely not industry custom to pay commissions after a salesperson has terminated employment, the expert witness admitted that the written employment contract used in his own company is “ambiguous” concerning a salesperson’s entitlement to post-termination commissions.

In sum, the trial court could have reasonably interpreted the expert testimony as designed to establish, rather than report, industry custom and usage.

Having determined that “the services necessary to earn the commissions were performed prior to termination of the employment,” Abbott v. Tec-Mill & Supply, Inc., 178 So. 2d 881 (Fla. 3d DCA 1965), the trial court correctly entered final judgment for Damion. Cornell concedes, as it must, that Damion, as the prevailing party, is entitled to reasonable attorney’s fees and costs in her action to recover unpaid wages. § 448.08, Fla.Stat. (1987). We, therefore, also affirm the agreed final judgment for attorney’s fees and court costs.

AFFIRMED.


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  • Antun Invs. Corp. v. Ergas, 549 So. 2d 706 (Fla. 3d DCA 1989)
    …ed the expert witnesses nor requested a continuance in order to review the reports. Thus, any prejudice to Antun accruing from the admission of the reports was attributable to its failure to act. Financiera Asociada, S.A. v. E.F. Hutton & Co., Inc., 530 So. 2d 497 (Fla. 3d DCA 1988). We therefore hold that the trial court did not abuse its discretion in admitting the reports into evidence.5 B. Antun also challenges the damage awards. We address each award in turn. 1-OUT OF POCKET COSTS We find competent e…
  • E.H. Crump OF Fla., Inc. v. Aikin, 571 So. 2d 1353 (Fla. 2d DCA 1990)
    …ecluding such post-termination compensation, the jury’s determination that upon the termination of his employment plaintiff was entitled to compensation earned prior to the time of the termination was justified. See Cornell Computer Corp. v. Damion, 530 So. 2d 497, 498-99 (Fla. 3d DCA 1988) (quoting 56 C.J.S. Master and Servant § 92 (1948)) (“Ordinarily an employee does not forfeit his right to commissions, already earned under his contract, by the termination of his employment, as by his discharge, unless th…
  • D.G.D., Inc. v. Berkowitz, 605 So. 2d 496 (Fla. 3d DCA 1992)
    …wages costs of the action and a reasonable attorney’s fee.” § 448.08, Fla.Stat. (1991). Unpaid commissions which are found by the court to be owing, as here, have been construed to be the equivalent of unpaid wages. Cornell Computer Corp. v. Damion, 530 So. 2d 497 (Fla. 3d DCA 1988); Gulf Solar, Inc. v. Westfall, 447 So. 2d 363 (Fla. 2d DCA 1984). For the above-stated reasons, (1) the final judgment under review is reversed and the cause is remanded to the trial court with directions to enter a judgment for…

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