The Alberta Court of Queen’s Bench has ruled that Laszlo Szojka, a mutual fund representative, is entitled to more than $130,000 in commissions that were not paid out by his former firm, Pewter Financial Ltd., after he left the mutual fund dealer in 2011.

According to the decision, Szojka sued the firm for $150,000 in commissions that he said were withheld by the firm, along with commissions paid to Pewter after he left, as a result of his efforts. Pewter defended the lawsuit and counterclaimed for $75,000 plus damages for loss of business as a result of Szojka taking clients when he left the firm.

The decision notes that “both the plaintiff and defendant argue that the case turns largely on an interpretation of the formal agreement [between them] and whether it created any fiduciary obligation on the part of Mr. Szojka.”

Ultimately, the court concluded that Szojka did not breach any fiduciary obligation to Pewter by contacting his clients before he left the firm to facilitate their transfer to his new dealer and, therefore, Pewter has no independent cause of action in damages. It also found that he didn’t violate any duty of honesty owed to the firm.

“I find no dishonesty in Mr. Szojka’s conduct,” said Justice John S. Little in the decision. “He told Pewter early on that he wanted to leave early. Pewter said he could not, as only Pewter was entitled to do so under the terms of the formal agreement. Mr. Szojka then stayed until almost [to] the end, when he was essentially frustrated by Pewter during the last few days by blocking his computer access and suspending him.”

The court also did not find that Pewter’s conduct was dishonest, just that it was “commercially unreasonable”. It said that, “knowing in August that your star agent who had paid $1.2 million to a third party for the right to advise clients and earn commissions was unhappy and had a fixed term contract, and taking no steps to deal with it, in my view is not commercially reasonable. But it is not dishonest.”

As a result, the court granted judgment to Szojka for $130,414.96, which comprised of $90,431.81 in net commissions earned before he left the firm and $39,983.15 in gross commissions received by Pewter and payable to his dealer rep codes, plus interest and costs.