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Great American Opportunities, Inc. v. James A. Brigman

Tenn. Ct. App.April 6, 2018No. M2016-02035-COA-R3-CV
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Case Details

Judge(s)
Judge John W. McClarty
Status — whether other courts must follow this ruling
Published
Procedural Posture — the stage the case had reached
bench trial

Related Laws

No specific laws identified for this ruling.

Claim Types

Breach of Contract

Excerpt

This is a breach of contract action in which the plaintiff employer filed suit against its employee, claiming that he was liable for balances on his commission and sales accounts and for breach of loyalty pursuant to the terms of the employment agreement. Following a bench trial, the court ruled in favor of the employee and ordered the employer to direct the redemption of his stock held in the parent company. We reverse, in part, and hold that the parent company is not obligated to redeem the stock and that the employer is entitled to $15,000 in damages for unearned compensation as a result of the employee's breach of loyalty. The court's judgment is affirmed in all other respects. We remand for the collection of attorney fees and costs.

What This Ruling Means

**What happened:** Great American Opportunities sued their employee, James Brigman, claiming he owed money on his commission and sales accounts and had violated his duty of loyalty to the company under his employment contract. The company wanted Brigman to pay back money they said he owed them. **What the court decided:** After a trial, the lower court sided with Brigman and ordered the company to help him cash out stock he owned in the parent company. However, the appeals court partially reversed this decision, ruling that the parent company was not required to redeem Brigman's stock. The case was sent back to the lower court for further proceedings. **Why this matters for workers:** This case shows how complex employment contracts can lead to disputes even after someone leaves their job. Workers should be aware that employers may try to collect money they claim is owed, especially in sales roles involving commissions. The ruling also demonstrates that stock ownership benefits in employment agreements can be complicated to enforce. Workers with employment contracts involving commissions, stock options, or loyalty clauses should understand their obligations and rights, as these terms can lead to lengthy legal battles.

This summary was generated to explain the ruling in plain English and is not legal advice.

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