Alfred Rosenthal's contract provided that he would receive a 10% commission on the sale of Quadriga Art's products.
While both sides had the right to end the deal on 30-days' notice, two obligations supposedly survived termination: Rosenthal couldn't engage in business with any of the company's customers for a three-year period, and Quadriga would continue to pay a commission on those products purchased by Rosenthal's customers during that same timeframe.
When Alfred died, his wife, Gloria, sued for payment of the commissions. And she ended up having to file an appeal after the New York County Supreme Court threw her case out.
Because the payments were in exchange for Alfred refraining from competing against the company, and the agreement didn't provide that Alfred's survivors would be compensated, the Appellate Division, First Department, didn't think Gloria was entitled to any dough.
Did they brush her off?
To view a copy of the Appellate Division's decision, please follow this link: Rosenthal v. Quadriga Art, Inc.