The article “Breach of Oral Contract, Treble Damages,” was published in the Los Angeles Daily Journal on August 13, 2013. The article discusses the importance for manufacturers, distributors and sales representatives of the published decision of Reilly v. Inquest Technology, Inc.
, 2013 DJDAR 10164 (Cal. App. 4th Dist. July 31, 2013). The Reilly
decision is the first precedent in California to uphold a jury verdict and judgment of treble damages and attorney fees against a manufacturer who failed to pay all sales commissions owed to an independent sales representative. Eric S. Engel
and H. Kim Sim
represented Peter Reilly, the sales representative, at trial in Orange County Superior Court. They obtained a unanimous jury verdict awarding Reilly $2.1 million in unpaid commissions. Using the Independent Wholesale Sales Representatives Contractual Relations Act, CK&E then obtained an order from Judge Frederick Horn multiplying the jury’s award by a factor of three, for a judgment of $6.2 million plus attorney’s fees and interest. That judgment was fully upheld by the California Court of Appeal in its July 31, 2013 decision. The decision provides a template for future cases seeking treble damages for breach of commission contracts made with independent sales representatives, and can serve as a guide to manufacturers and distributors who want to avoid exposure to such liability.
Click here for the full text of the article, “Breach of oral contract, treble damages”: Reilly v Inquest Daily Journal Article
Click here for the full copy of the California Court of Appeal decision: Reilly v Inquest Court of Appeal Decision, Case No. G046291 (July 31, 2013)