Harris v. Wye Tree Experts, Inc.

Eldridge, J., delivered the opinion of the Court. This case involves a dispute over commissions allegedly ⁴⁵⁵ due from the appellee Wye Tree Experts, Inc., to its former employee, appellant William P. Harris, IV. The issue which we must decide is whether, under the language of the employment contract, Harris is entitled to commissions for sales he made in 1970, for which customers were sent bills in 1970, but on which the company did not receive payment from its customers until 1971. Harris was first employed as a salesman by Wye Tree Experts on February 3, 1969.

A written “sales employment contract” signed by both parties on that date provided that Harris would receive a commission based on his paid accounts. The term “paid accounts” referred to those sales by Harris on which the company had received payment from the customers. Harris continued to work for Wye Tree Experts under contracts which were re-executed annually. The employment contract in force when this case arose had been signed on January 1, 1971.

This contract, like the prior contracts, provided that Harris would receive a commission based on his paid accounts for each year. The contract also provided that, if Harris’s employment were terminated, his commissions after termination would be based on his billed accounts to date of termination rather than his paid accounts. The term “billed accounts” referred to those sales by Harris for which the customer had been billed by Wye Tree Experts. The relevant portion of the employment contract with regard to Harris’s employment in a normal year is the following provision in the Sales Plan which was made a part of the 1971 contract and the prior contracts: “20% commission to be paid on the total of the salesman’s paid accounts for the calendar year with consideration to overages and shortages on these accounts.” The following provision, paragraph 14 of the 1971 employment contract, provides for Harris’s compensation in case of termination of his employment. “14.

Compensation after termination. After termination of the contract, provided employee has ⁴⁵⁶ not violated the terms and conditions of this contract, the employee will receive full commission on his billed accounts to date of termination of his employment as per Sales Plan attached. Any work sold and not billed will be forfeited by the Salesman to the company. Payment would be due on the date of the regular commission.schedule.” Wye Tree Experts became dissatisfied with Harris’s employment performance and terminated his employment on November 19, 1971.

Following his discharge, Harris did not receive what he considered proper compensation under the contract. He filed suit in the Circuit Court for Talbot County seeking the commissions allegedly due him. On March 15, 1974, the circuit court rendered its decision. It awarded to Harris the sum of $1,474.80, representing the unpaid commissions earned by appellant and billed in 1971.

This award is not in issue in this case. The court declined to include in the award commissions on sales made by Harris in 1970, and billed in 1970, which had not been paid for by the customers until 1971. Harris had not received commissions on these sales in 1970. The court viewed paragraph 14 of the employment contract as requiring the payment of commissions to Harris only for accounts billed in 1971 and excluding payment of commissions for accounts billed in 1970 but not paid until 1971.

Believing that the circuit court had misunderstood his claim for the 1970 commissions, Harris filed a motion asking the court to revise its judgment or, in the alternative, to grant a partial new trial on the issue of the 1970 commissions.. The court denied these motions on April 4, 1974.