Arbitrator: Oracle’s Retroactive “Cap” on Commissions Illegal

Oracle Didn’t Want to Pay Salesman’s Earned Commissions on $135M CUNY Deal

New York, N.Y. — Bonnie Siber Weinstock, an arbitrator based in New York, has found that a retroactive “cap” on commissions imposed by Oracle USA, Inc. on the commission income of a former salesman who helped the company make a $135 million deal with CUNY for software consulting services. Weinstock found that Oracle breached its contract with James Giller and has ordered Oracle to pay nearly $100,000 it withheld by imposing a cap “purely because [Oracle wanted to] avoid paying the sums earned.”

James Giller of New York, NY was a consulting sales manager with Oracle for nearly three years, and was a key player in making a $135 million sale in consulting services to the City University of New York (CUNY) on the last day of Oracle’s 2007 Fiscal Year. Oracle contended that its commission cap was imposed as a result of an “administrative error” in the setting of its sales targets by a new management team. But Ms. Weinstock did not buy this excuse. She found that Oracle’s cap was imposed in bad faith, solely to avoid paying Giller, who had “dramatically exceeded his sales target,” and other salespeople in its consulting department, commission income that had already been earned.

Giller was represented in his arbitration against Oracle by G. Martin Meyers, Esq. of Denville, New Jersey. Mr. Meyers said, “The arbitrator hit the nail on the head as far as Oracle’s retroactive cap was concerned. But she failed to recognize the full extent of Oracle’s breach of contract, which actually cheated James Giller out of more than $2,000,000 in commission income.” Meyers said he will take action on Mr. Giller’s behalf aimed at vacating that portion of the Arbitrator’s ruling that denied Mr. Giller’s claim for the remainder of the commission that Oracle withheld.

The Law Offices of G. Martin Meyers provides representation to clients in legal disputes with their employers throughout the United States.

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