Greenland v GX Networks Ltd

Greenland v GX Networks Ltd

The defendant's decision to cap the claimant's commission was irrational because it was based on irrelevant considerations, namely the magnitude of the sum payable and the company's own failure to adjust targets in a timely manner. The discretion to cap was not exercised in accordance with the contract, and the claimant is entitled to the full commission claimed.

Parties
Claimant: Deborah Jane Greenland; Defendant: GX Networks Limited
Jurisdiction
England and Wales
Judgment Date
05 October 2009
Procedural Posture
Employment Claim (contractual Commission Dispute) / Judgment After Trial
Outcome
Judgment for the claimant
Legal Topics
Commission Entitlement, Exercise of Contractual Discretion, Employment Contract Variation, Bonus Capping
Employment Law Contract Law Commission Entitlement Exercise of Contractual Discretion Employment Contract Variation Bonus Capping

Case Brief

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Parties

Deborah Jane Greenland

Claimant

GX Networks Limited

Defendant

Procedural Posture

Employment Claim (contractual Commission Dispute) / Judgment After Trial

Legal Issues

  1. 1 Whether the defendant was contractually entitled to cap the claimant's commission for 2007
  2. 2 Whether the discretion to cap commission was exercised lawfully and rationally

Ratio Decidendi

The defendant's decision to cap the claimant's commission was irrational because it was based on irrelevant considerations, namely the magnitude of the sum payable and the company's own failure to adjust targets in a timely manner. The discretion to cap was not exercised in accordance with the contract, and the claimant is entitled to the full commission claimed.

Court Disposition

Judgment for the claimant

Orders

  • Defendant to pay claimant £126,812 as commission for 2007
  • Defendant to pay interest of £12,757.60