Opinion ID: 1143765
Heading Depth: 4
Heading Rank: 3

Heading: Bonus Agreement Modification

Text: The court also found that Beaux's proposal for changes in the bonus agreement were presented on a take it or leave it basis and constituted evidence of bad faith. The record does support the finding that Beaux threatened to fire Pat Gibson, or to shut the Klondike down, if Pat refused to sign the second agreement modification. However, we find that the proposal, even if accompanied by a threat of termination, was not made in bad faith. Beaux had every right to fire Gibson, thus terminating the bonus agreement, so long as he did so for a legitimate business reason. Moreover, the proposed modification provided advantages to both parties. Under the proposal, Gibson would have received a bonus (of $50,000), even if he was not working at the time the Klondike was sold, if he worked through September 15, 1982; Beaux's advantage was that the bonus calculation would reflect an additional $83,750 in increased capital Beaux claimed he invested. [11] In addition, Beaux testified that Gibson could continue to work under the existing agreement. Finally, regardless of the nature and gravity of Beaux's threats, [12] he took no action on them. Instead, Pat Gibson quit voluntarily. He conceded that his desire to return to teaching was at least a significant reason for his quitting. Beaux's threat to fire Gibson appears to have been aggressive posturing for negotiation; when Gibson refused to knuckle under, Beaux did not carry out his threat. This threat did not rise to the level of a breach of good faith and fair dealing.