KAREN L. SAVAGE, Plaintiff-Appellant,
SCANDIT INC., Defendant-Respondent.
2018 Opinion No. 46
from the District Court of the Fourth Judicial District of
the State of Idaho, Valley County. Hon. Jason D. Scott,
judgment of the district court is reversed. This
case is remanded for further proceedings consistent
with this Opinion.
Pursley, LLP, Boise, Attorney for appellant. Thomas Dvorak
Hawley, Troxell, Ennis & Hawley, Boise, for respondent.
Daylen John Ashby argued.
SCHROEDER, Justice pro tem
NATURE OF THE CASE
Savage appeals the dismissal of her Idaho Wage Claim Act
("IWCA") action by the district court in Valley
County. Savage brought this action against her employer
Scandit Inc. ("Scandit") in November 2016 after
Scandit failed to pay her over $400, 000 in commissions and
bonuses she claims were due by the end of October. The
district court granted Scandit's motion to dismiss
finding that Savage had failed to allege that she had earned
the commissions as defined in the 2016 Commission
Compensation Plan ("CCP") between Savage and
Scandit. The district court also denied Savage's motion
to amend, holding that the amendment would be futile. This
case was decided upon Scandit's motion to dismiss.
Consequently the facts are those set forth in the complaint
FACTUAL AND PROCEDURAL BACKGROUND
was employed by Scandit as a senior sales executive. In early
2016 both parties signed the CCP. On September 27, 2016,
Savage coordinated a Master Software License Agreement with
Amazon Services, LLC ("Amazon Agreement").
Savage's commission from the Amazon Agreement was $390,
234. Savage alleges that the commission became due in late
September or October of 2016. Scandit agrees that the
commission was not paid during this time and agrees that at
this stage Savage is entitled to the assumption that the
prepayment was due. Both parties rely on section IV of the
CCP, which in relevant part provides the following:
Commissions shall become earned (i.e. not subject to
recoupment or "claw-back" by Employer) only upon
(a) recognition of revenue by Scandit according to its then
current revenue recognition policies, and (b) actual receipt
of payment from the customer.
Therefore, should one or both of these conditions fail to
occur, the paid but unearned commissions must be returned to
Scandit by Employee per Section V below. Employee's
obligation to return any prepaid but unearned commission
survives any termination of the Employee's engagement
with Scandit, and Employee agrees that such amounts may be
deducted from Employee's final paycheck including
severance payments, if any.
100% of the respective commission will be paid as soon as
reasonably practicable following the booking of the Order,
and ideally no later than within 30 days of the end of the
month during which the transaction has been booked.
Section continues on to discuss the criteria for a sale to be
did not receive the payment when she alleges it was due and
brought this suit seeking treble damages under the IWCA as
well as contractual damages. Additionally, the contract
provides for an annual quota bonus of $36, 000 should her
sales for the year surpass a certain quantity. The relevant
section of the CCP states:
Employee will earn a bonus of USD 36, 000 if
the combined ACV [Annual Contract Value] of renewals and
Orders equals CHF [Swiss ...