Employer pays Plaintiff $100,000 after breaching commission contract

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In the media:

Facts of the case:

Defendant Scott Gormley and his corporation, SGI, sold/installed furnaces and heaters, principally through their intermediary, Home Depot. Plaintiff Dan Gallagher was one of their best salesmen. In fact, Dan Gallagher was so good that Defendants would have had to pay him quite a bit of money in commission attributable to sales he generated in accordance with the contract Plaintiff and Defendants had agreed to in writing.

Instead of paying Dan as promised in writing, Defendants reneged on their promise and kept the substantial commission monies for themselves. Plaintiff filed two complaint with the State of Michigan protesting this behavior, and participated in investigations held by the State into this matter. Defendants retaliated against Plaintiff by effectively terminating his employment, claiming “cash flow” problems.

Plaintiff then filed a lawsuit in Genesee County Circuit Court alleging (1) Whistleblower Protection Act violation, (2) Breach of Contract, (3) Breach of Implied In-Fact Contract, and (4) Violation of Sales Representative Commission Act.

The case settled through the ADR process, both side accepting the $100,000 ADR Award.

Summary of the case:

Type of Action:    Whistleblower Protection Act violation, Breach of Contract, Breach of Implied In-Fact Contract, and Violation of Sales Representative Commission Act
Injuries Alleged:    Loss of job, lost wages, outrage/emotional distress/mental anguish
Name of Case:   Dan Gallagher v. Scott Gormley, Inc, et al
Court:    Genesee County Circuit Court   
Name of Judge:    Hon. Joseph J. Farah
Settlement:    $100,000

Attorney for Plaintiff:    Tom R. Pabst