- 3 -
as an independent contractor under a contract between the two.
Academy fired him in July 1986. When it did, it was
contractually obligated to pay him renewal commissions on
policies that he or an agent under his supervision had sold.
After his firing, Academy remitted to him reduced monthly
commissions. It also stopped sending to him the paperwork
documenting his commissions.
In September 1987, petitioner sued Academy for breach of
contract and conversion, praying in his complaint for an award of
actual and punitive damages. Petitioner alleged that Academy was
liable to him for: (1) An unlawful termination of contracts with
resulting failure to pay money due thereunder (breach of contract
and conversion), (2) unfair trade practices (also seeking treble
damages and attorney’s fees), (3) a termination of resident
counselor status, (4) a failure to pay commissions, and (5) the
fraudulent filing of Federal tax forms reporting income not paid
to him. Following a jury trial, the United States District Court
hearing the case directed a verdict against Academy for breach of
contract and sent the issues of conversion and resulting damages
to the jury. The judge instructed the jury as follows with
respect to punitive damages:
The plaintiffs [petitioner and another person not
relevant herein] are also seeking punitive damages in
their conversion cause of action.
The law permits the jury, under certain
circumstances, to award punitive damages in order to
punish a wrong-doer for some extraordinary misconduct,
and to serve as a warning not to engage in such conduct
in the future.
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 Next
Last modified: May 25, 2011