Service
Context
A client, hired by an IT company as a sales specialist, was promised a promotion to commercial director if he generated 1 million kroner worth of new sales within 90 days. Despite the difficult conditions at the end of the calendar year, he fulfilled this condition. The company’s CEO verbally confirmed the position to him, and he regularly participated in C-level meetings.
However, when he raised the issue of compensation, the company initially refused and later removed him from the meetings without resolving the matter. Soon afterwards, another person was hired to replace him. Following unsuccessful attempts to update the contract, the client terminated it and turned to NAWI Europe a.s. for legal representation.
The goal was to obtain recognition of the other party’s liability and a fair financial settlement, including commissions for projects not included in the initial contract.
However, when he raised the issue of compensation, the company initially refused and later removed him from the meetings without resolving the matter. Soon afterwards, another person was hired to replace him. Following unsuccessful attempts to update the contract, the client terminated it and turned to NAWI Europe a.s. for legal representation.
The goal was to obtain recognition of the other party’s liability and a fair financial settlement, including commissions for projects not included in the initial contract.
Tasks
- Conduct a legal analysis of the obligations arising from implied agreements.
- Prepare a pre-trial negotiation strategy to force the other party to settle.
- Provide legal arguments regarding the 'Schwarz system' and the reputational risks associated with it.
- Calculate the financial damage, including underpayments and unpaid commissions.
- Reach a settlement agreement within a few months to avoid a protracted dispute.
Legal analysis and approach
- We prepared a legal opinion on the creation of a new position through the performance of the duties of commercial director.
- We identified elements of the Schwarz system and its possible consequences for the other party.
- We prepared a comprehensive legal claim for the conclusion of a settlement agreement.
- We proposed the amount of damages and supported it with evidence of the client's contribution (commercial opportunities, internal communication, e-mail, participation in strategic meetings).
- We agreed on a fair settlement agreement, which included commissions from future projects.
Key moment
The turning point came when the client immediately terminated the contract after learning that the IT company did not plan to pay any compensation and was trying to hide his involvement in the business. That’s when the situation changed — the client took the initiative and, thanks to NAWI Europe’s legal support, began to dictate the rules of the game. This determination, combined with excellent timing and strong arguments, forced the opponent to give in and sign a settlement agreement.
Result
- The client received compensation of 290,000 kroner without the need for litigation.
- The other party was found liable for inaction and for failing to comply with verbal agreements.
- The settlement agreement included the right to commissions from current projects, despite these not being specified in the original contract.
- The client received legal support and recovered from the financial crisis.
“What angered me the most was the way the IT company behaved in this situation, putting me in a difficult financial position. I am grateful that NAWI Europe helped me achieve a fair settlement without a lengthy court case.”
Legal areas
- Contractual commercial law
- Verbal agreements and implied legal actions
- Pre-trial settlements and agreements
- Schwarz system and unjust enrichment
Keywords
#settlement #schwarzsystem #impliedagreements #NAWI #fairdecision #commercialdirector
