Paul E. Hathaway and Brenda J. Hathaway - Page 4

                                        - 4 -                                         
               During the years in issue, TAG had about 23 sales                      
          representatives.  TAG hired only professional, experienced sales            
          representatives and had a very low turnover rate for sales                  
          representatives.  Most of TAG’s sales representatives had been              
          with TAG for more than 20 years.                                            
               TAG assigned sales territories to its sales representatives.           
          These sales territories were exclusive.  If a sales                         
          representative other than the one assigned to a territory made a            
          sale in that territory, then the sales representative to whom the           
          territory was assigned would receive the commission for that                
          sale.  Before 1990, Hathaway’s assigned sales territory was                 
          Kansas, Nebraska, and Iowa.3  Early in 1990, Hathaway’s sales               
          territory was expanded to include North and South Dakota,                   
          Wyoming, and about 70 percent4 of Minnesota.  Hathaway                      
          effectuated most of his sales when traveling in this territory.             

          3    Before TAG hired Hathaway, Hathaway was living in Lexington,           
          Kentucky, and was another company’s sales representative for                
          Kentucky and southern Indiana.  Hathaway originally was expected            
          to replace either TAG’s southern California sales representative            
          or TAG’s Seattle, Washington, sales representative.  However,               
          when Hathaway came on board, TAG’s Oklahoma sales representative            
          was ill.  Hathaway was assigned to learn the Oklahoma territory,            
          and the southern California and Seattle plans were scratched.               
          After the previous Oklahoma sales representative died, that man’s           
          brother, who had the Iowa territory, was asked to take over                 
          Oklahoma and Hathaway was asked to take over Iowa.                          
          4    The parties stipulated that Hathaway’s assigned sales                  
          territory included 60 percent of Minnesota.  Our finding,                   
          contrary to the stipulation, is in accord with Hathaway’s trial             
          testimony, which was not objected to at the trial.  This factual            
          point does not affect our analysis or conclusions.                          

Page:  Previous  1  2  3  4  5  6  7  8  9  10  11  12  13  14  15  16  17  18  19  20  Next

Last modified: May 25, 2011