December 2022

Printing Solutions Company Wins at Trial in Employment Contract Dispute

United States - New York

A secure cloud printing solutions company that was acquired by one of the world’s largest personal computer vendors won at trial in an employment contract dispute, with the jury denying all claims and awarding the secure cloud printing solutions company $2,000 on its counterclaim for unreturned computer equipment. Faegre Drinker led a cross-office litigation team after a highly compensated salesperson filed suit in the Southern District of New York following his termination in January of 2018. He alleged a breach of his employment contract in that the secure cloud printing solutions company failed to pay commissions and bonuses that he was due. He also alleged a breach of the covenant of good faith and fair dealing because he wasn’t paid a retention bonus in connection with the company’s acquisition by the personal computer vendor. 

The secure cloud printing solutions company denied it owed the former employee anything, counterclaiming that he had breached his employment contract by not signing a release after he received severance and because he had failed to return computer equipment. The court dismissed a large part of his commission claim ($1 million worth) on summary judgement and reaffirmed the dismissal when he sought reconsideration. After participating in two settlement conferences and one private mediation, he dropped his claim from $1.7 million to $792,000 before trial. 

Ultimately, after a five-day trial in 2022, the jury denied all of his claims and awarded the secure cloud printing solutions company $2,000 on its counterclaim for computer equipment. 

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