Gilkerson v. Nebraska Colocation Centers, L.L.C.,
2016 WL 3079705 (2016)
Nature Of The Case
This section contains the nature of the case and procedural background.
Facts
P was hired in 2011 to be D's Vice President and General Manager. P and D agreed to a 10-year employment contract, paying Gilkerson an annual base salary of $84,000, quarterly sales bonuses, and a retirement bonus upon the expiration of P's employment period. If D terminated P's employment without cause before the 10-year term expired, P would receive his remaining salary for the balance of the term in a lump sum, another 5 years' bonuses, and his full retirement bonus. If P were to be terminated with cause, he would receive only his unpaid compensation for services already performed. 'Cause' for termination could include P's 'willful misconduct' in carrying out his duties; or 'persistent failure to perform the duties and responsibilities of his employment hereunder; which failure is not remedied by him within 30 days after [his] receipt of written notice from D of such failure.' D was evidently unhappy with P's performance helping with sales. D's president, Jerry Appel, talked with P about how he wanted P to 'close more deals.' P's performance reviews had been 'unsatisfactory' ratings in 'achieves sales goals' and 'fulfills the terms of his contract.' The most recent review indicated that P's 'lack of sales is irrefutable and of great concern[,]' and detailed P's alleged failings in sales. P explained that his experience was not in sales and that 'except in the startup phase when everyone needed to pitch in and wear many hats[,]' he had understood that sales would be the responsibility of a dedicated sales team. Appel announced the hiring of a new 'Vice President - Sales and Marketing' and that P's job title had been changed to 'Director: Field Engineering and Channel Services.' Appel was 'developing a new compensation program for P's new position. P was to retain [his] salary at the current level, provide incentives for channel and carrier sales, and bonuses for field engineering and product development.' P was presented with a document captioned 'Mutual Rescission,' which would rescind P's employment contract. The term sheet P ultimately signed provided P with the same base salary as the employment contract, a higher commission rate, and an additional bonus contingent upon certain goals. It limited the calculation of commission to P's 'customers' as defined by the term sheet, and did not include the retirement bonus. The term sheet did not prohibit P's termination. Appel was sharply critical of P's performance and presented P with a choice between agreeing to the rescission and term sheet or being fired for cause. Appel stated that P didn't live up to what his obligations were in the original contract and that P would be fired if he didn't sign the agreements. P ultimately signed on July 18, 2013. D fired P on January 8, 2014. P sued D for breach of contract and violation of the Nebraska Wage Payment and Collection Act, claiming duress. The case was removed, and D moved for summary judgment.
Issues
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Holding & Decision
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Legal Analysis
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