SPG International, LLC - Arbitrator Finds for Client in Commissions Dispute

Challenge

A former sales representative commenced arbitration against our client, SPG, a storage solutions company, seeking to recover sales commissions allegedly due under the parties’ agreement. The claimant sought both pre-termination and post-termination commissions. Issues in the case concern a dispute over the termination date and entitlement to post-termination commissions.

Approach

We filed a motion for partial summary judgment regarding the issue of entitlement to post-termination commissions. The arbitrator found in our favor on the ground that the language of the contract precluded the relief sought. This favorable decision was significant because it severely restricts the relief that the sales representative will be able to claim at the ultimate hearing, and it increases the likelihood that we will obtain a favorable ruling on the opposing party’s request for attorneys’ fees.

Result

We filed a motion for partial summary judgment regarding the issue of entitlement to post-termination commissions. The arbitrator found in our favor on the ground that the language of the contract precluded the relief sought. This favorable decision was significant because it severely restricts the relief that the sales representative will be able to claim at the ultimate hearing, and it increases the likelihood that we will obtain a favorable ruling on the opposing party’s request for attorney’s fees.