417 P.3d 234
Idaho2018Background
- Karen Savage, a senior sales executive at Scandit, signed a 2016 Commission Compensation Plan (CCP). She negotiated a Master Software License Agreement with Amazon that generated a $390,234 commission.
- Savage alleges the commission was due in late September/October 2016 but was not paid; she sued under the Idaho Wage Claim Act (IWCA) seeking treble damages and contractual relief.
- The CCP contains (1) an "earned"/"claw-back" provision tying "earned" commissions to revenue recognition and actual customer payment, and (2) a separate payment timing clause stating 100% of commission will be paid "as soon as reasonably practicable" and ideally within 30 days of booking.
- CCP also provided a $36,000 annual quota bonus if combined ACV met a CHF 641,001 threshold; Savage alleges the Amazon deal pushed her past that threshold and the bonus became due immediately.
- The district court granted Scandit’s I.R.C.P. 12(b)(6) motion, concluding Savage had not "earned" the commission (because customer payment/revenue recognition had not occurred) and that the annual bonus was not yet due; it also denied Savage leave to amend as futile.
- The Idaho Supreme Court reversed, holding Savage’s complaint sufficiently alleged wages "due and owing" for both the commission and the bonus and that the proposed amendments were not futile; case remanded.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether unpaid commission is recoverable under IWCA | Savage: commission was due and owing at filing under CCP payment timing (100% within 30 days of booking); she had no further obligations | Scandit: commission not "earned" until revenue recognition/payment by customer, so claim seeks future wages not subject to IWCA | Reversed: complaint plausibly alleges commission was due and owing; IWCA claim survives 12(b)(6) |
| Whether annual quota bonus is covered by IWCA | Savage: bonus became due once ACV threshold was met (when Amazon deal closed) | Scandit: annual bonus is payable at year-end, not yet due when suit filed | Reversed: CCP ambiguous as to timing; reasonable inference that bonus could be due when threshold crossed; claim stated |
| Whether proposed amendment to add equitable claims was futile | Savage: proposed facts would prevent Scandit from asserting booking/payment contingencies; amendment would cure defects | Scandit: amendment cannot change fact that commission wasn’t "earned" before filing | Reversed: amendment was not futile because amended complaint alleged commission was due and owing when leave sought |
| Whether attorney fees on appeal should be awarded now | Savage: seeks fees under IWCA if prevailing party | Scandit: seeks fees as prevailing party | Denied now: no fees awarded on appeal; remand court may consider appellate fees when prevailing party is determined |
Key Cases Cited
- Bakker v. Thunder Spring-Wareham, LLC, 141 Idaho 185, 108 P.3d 332 (2005) (parties may contract for when compensation is earned/due; commission recovery depends on contract terms)
- Moore v. Omnicare, Inc., 141 Idaho 809, 118 P.3d 141 (2005) (IWCA applies to wages "due and owing"; future wages not subject to trebling)
- Nettleton v. Canyon Outdoor Media, LLC, 163 Idaho 70, 408 P.3d 68 (2017) (whether commissions are due at filing can present a material fact question; summary judgment vacated)
- Paolini v. Albertson’s Inc., 143 Idaho 547, 149 P.3d 822 (2006) (bonuses constitute wages under IWCA)
- Hammer v. Ribi, 162 Idaho 570, 401 P.3d 148 (2017) (standard of review for Rule 12(b)(6) dismissal)
- Idaho Wool Growers Ass’n, Inc. v. State, 154 Idaho 716, 302 P.3d 341 (2013) (court may consider incorporated contract terms on a motion to dismiss)
