American Software, Inc. v. Ali

46 Cal.App. 4th 1386 (1996)

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Nature of the Case

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Facts

Ali (P) was an account executive for American (D) from 9-5-91 to 3-2-94. P voluntarily resigned to work for one of D's competitors. P was paid a salary plus commission, and P could draw from commissions in advance with any negative amount not being covered by actual commission earnings being carried over into the next month. P's monthly salary was $3,333, and her draw was $2,917 per month. The terms of the contract were set out in a written document. Upon termination, the right of all commissions which would normally be due and payable are forfeited after 30 days following termination and in the case of involuntary termination, that period was 90 days. P was aware of this written contract provision. P left D but sought additional commissions in connection with transactions with IBM and Kaiser Foundation Health Plan. P's claim for unpaid commissions was denied by the labor board, but P won a $30,000 verdict in superior court on a finding that the contract provision was unconscionable. D appealed.