Predictability and fairness are typical pillars of employment law. Where predictability allows both employers and workers to understand and navigate the rules and regulations that are applicable to them, fairness provides a constant level of security to all parties. Recently, the Texas Supreme Court used an unpredictable procedure to reach what it calls a “rule of fairness and right.”
In a 7-2 decision by the Texas Supreme Court, a Texas healthcare company was ordered to pay over $960,000 in commissions to its former employee after determining that the procuring-cause doctrine applied to the parties’ agreement. Deemed a disruptive application of an archaic doctrine by two dissenting justices, Baylor Miraca Genetics Laboratories LLC (BMGL) was ordered to pay the amount to Brandon Perthuis, its former sales executive, resulting from an amended purchase contract negotiated by Perthuis, and then signed by BMGL the day after his termination.
Background
BMGL hired Perthuis as an at-will employee in 2015 as a Vice President of Sales and Marketing. At the outset of his role, Perthuis signed a two-page employment agreement, which provided that his employment would be at-will and that he would receive commissions of 3.5% of his net sales. At the same time, Perthuis signed a “retention agreement” which, among other things, expressly conditioned bonuses on continued employment. The employment agreement contained no such requirements for commission payments.
In 2017, Perthuis...
Social media was flooded with claims that a girl had been assaulted by alleged Hindu and RSS supporters in the presence of Delhi Police personnel, who supposedly remained silent spectators. The cl...