Holland v. Earl G. Graves Publishing Co., Inc.

Facts

By letter dated February 19, 1992, D extended an offer of employment to P. On or about March 2, 1992, plaintiff commenced employment as an at-will employee in the position of Account Executive. P was promoted to Senior Account Executive on or about July 1, 1994. P's principal job responsibility was to obtain advertising accounts for Black Enterprise, a magazine that D published. Plaintiff spent a substantial portion of her time each year in Michigan calling on automotive customers in the Detroit area. 

Percentage Above Annual % Payout

Net Revenue Quota

0-5% 5%

6-15% 10%

16-25% 15%

26% and Above 20%

The annual net revenue goal for that payout was $1,342,000. That goal was subsequently increased by $207,000. D contends that P's quota was modified in February 1995, at the approximate mid-point of the fiscal year, after a contract between Black Enterprise and GM Mediaworks was signed. The increase in the goal impacted P’s earnings by $55,000. Under the relevant compensation package, D reserved the right to make final quota assignments and to make goal adjustments. An adjustment was required with respect to Plaintiff's quota so as to protect the integrity and purpose of the commission compensation program. Due to the activity and effort of others, advertising revenue from the automotive industry realized a net increase. P was not entitled to enjoy commissions on the net increase in advertising revenue attributed to the activity or effort of other individuals, and thus, an appropriate adjustment was made with respect to P's quota so as to avoid an unearned windfall for P. P insists that her quota was raised retroactively after the close of the 1994/1995 fiscal year. After the close of the fiscal year and after she had already generated $ 1,836,987 in net revenue. P alleged breach of contract. P seeks summary judgment on that count. P argues that the 1994/1995 compensation agreement was an 'offer' for a unilateral contract, which she accepted and it became irrevocable and could not be modified or withdrawn absent mutual assent.

Issues

Rule of Law

Holding and Decision

Legal Analysis

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