Terminated on Contingency Contract

[goodaysunshine]

If one is working on a contract that pays only a percentage, let's say 15% on all deals brought in and one is then terminated before the deals can be completed,
can one litigate using the argument of Quantum Meruit? Or perhaps another legal argument?

It seems to be the M.O. of the other party to do this, so that the value of the work
is never compensated for. Also, the other party refuses to answer any communication to argue that they should be allowed to complete the deals so that they can both benefit. As everyone knows, 100% of zero is nothing.

Is there a simple resolution to this type of situation?

It seems grossly unfair to work on 'spec' and not be able to receive any consideration and that some of the deals could not be quantified financially.
Therefore, exact compensation could never be realized if it went to trial.

Thank you for any thoughts.

 

[pattytx]

Employee status or independent contractor?

 

[goodaysunshine]

Independent contractor.
The hurt party is absolutely miffed as these deals took anywhere between 6 months to two years w/out the chance of being completed.
The lawyers on these deals all agreed that it would have amounted to a financial windfall. These lawyers are also owed outstanding invoices of which they are not being paid as well for work they did on the deals. It actually hurts three parties.

 

[pattytx]

Sounds like maybe you are one of the attorneys? You'll have to hang on for one of your siblings.

 

[goodaysunshine]

Uhh...no, I am not one of the lawyers.
I wouldn't be on this message board asking questions if I were.

 

[pattytx]

We have lawyers ask questions here. Not all attorneys are versed in contract or employment law.

 

[katmo7]

It seems to be the M.O. of the other party to do this, so that the value of the work is never compensated for.

What state are you employed in? Also what was the reason if any given as to why you and/or others were being terminated? In only 11 states (Alabama, Alaska, Arizona, California, Delaware, Idaho, Massachusetts, Montana, Nevada, Utah and Wyoming) is there a good faith and fair dealing covenant that is an implied obligation in all contracts. The covenant recognizes that parties to a contract must act in good faith toward each other. This means that an employer may not fire an employee out of malice or in bad faith including in order to avoid paying money (e.g., commission or bonus) owed to the employee.

I saw a case somewhat similar to yours below in MA. Sale traders for an Investment banking firm were anywhere at 80% to 60% of their target goals for bonuses to be paid out, but management was trying to fire them a month and a half before the bonus payout was due to be given due to saving a few extra billion dollars for well probably themselves. The Company was trying to document at that last minute poor performance (which was a lame attempt), but due to the covenant of good faith and fair dealing and the timing of everything they were required to pay the employees a percentage of their total target bonuses reached to date upon terminating them. Some employees they did in fact manage out (really due to a new manager wanting to bring in his "own" people) and some employees they initially they wanted to get "rid" off they ended up keeping, but not before paying them out their bonuses.

It depends what state you are in. I'm not sure how any exact compensation could be realized/calculated though like you stated below or even if it could be. It's a bit different than bonuses and the mistake this Company in MA made was communicating target bonus projections to employees at the beginning of the year and guaranteeing bonuses as part of their employment offer.

Depending on what state you are employed in you should really refer this to an experienced lawyer.

 

[mlane58]

What state are you employed in? Also what was the reason if any given as to why you and/or others were being terminated? In only 11 states (Alabama, Alaska, Arizona, California, Delaware, Idaho, Massachusetts, Montana, Nevada, Utah and Wyoming) is there a good faith and fair dealing covenant that is an implied obligation in all contracts. The covenant recognizes that parties to a contract must act in good faith toward each other. This means that an employer may not fire an employee out of malice or in bad faith including in order to avoid paying money (e.g., commission or bonus) owed to the employee.

The OP has already stated they are not an employee, but an independent contractor, so employment law doesn't come into play.

Depending on what state you are employed in you should really refer this to an experienced lawyer.

That should be an attorney well versed in contract law, not an employment attorney, since the OP is not an employee.

 

[katmo7]

The OP has already stated they are not an employee, but an independent contractor, so employment law doesn't come into play.

In some cases it may. I can cite many case laws to show you this. Especially a good faith and fair dealing covenant dealing with money potentially due.

That should be an attorney well versed in contract law, not an employment attorney, since the OP is not an employee.

No one said it should or shouldn't be an employment attorney but employment AALs do represent independent contractors as well and deal with contract issues too.

 

[eerelations]

Okay, cite 'em now. And don't post anything else until you've done that.

 

[>Charlotte<]

She can't. She got booted.

 

[pattytx]

She can't. She got booted.

Freakin' finally.

 

[eerelations]

Yahoo! Thanks for the update!

 

[Zigner]

Excellent...

 

[Just Blue]

Well, now that I've gotten everyone's hopes up, I should say instead that I think she got booted. Look at her profile. Don't the missing Statistics, Friends, and Contact Info tabs indicate a ban? I think it's at least a time out.

It used to be that the user name reverted to a black font deadlink and an n/a post-count, but not anymore.

That still will happen on a permanent bann...generally Admin will do a 10 or so unless a member really crosses the line...ie...Kelly...IAAL...SeatleSlop...

What's her name is on a "time out". Hopefully she will do better when her posting privileges are reinstated.