Ali

American Software, Inc. v. Ali

Caution
1996 Cal. App. LEXIS 610·46 Cal. App. 4th 1386·54 Cal. Rptr. 2d 477·96 Daily Journal DAR 7847·30 U.C.C. Rep. Serv. 2d (West) 98
Court of Appeal of CaliforniaJune 28, 1996A071689California2,948 words

Opinion

Opinion

King, J.

The appellant, American Software, Inc., appeals from a decision of the trial court granting a former employee, respondent Melane Ali, unpaid commissions based upon software sales she generated while in American Software’s employ but which were remitted by customers after she voluntarily severed her employment. The key issue in this appeal is whether a provision of Ali’s employment contract which, generally speaking, terminates her right to receive commissions on payments received on her accounts 30 days after severance of her employment is unconscionable, and therefore, unenforceable. The trial court found that Ali was entitled to recover the disputed commissions because this contractual provision was unconscionable. We disagree and reverse.

Facts

Ali was an account executive for American Software from September 5, 1991, to March 2, 1994. The employment relationship commenced after Ali was approached by a professional recruiter on behalf of American Software and was terminated when Ali voluntarily resigned because she had a job offer from one of American Software’s competitors. Ali was hired to sell and market licensing agreements for software products to large…

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