Facts
B. AG (plaintiff) is a company active in the trade, import and export of wood and wood products. It is part of the C. group and is a 100% subsidiary of D. AG, Switzerland, which holds the group's management. A. (defendant) had been employed by the plaintiff since 1978 and became its director and commercial manager in 1992, and then the managing director with joint signature in 1996. In 1994, A. facilitated a commercial transaction between C. Ltd., UK (a sister company of the group) and F. AG (belonging to A.'s wife), to the detriment of the plaintiff. In 1995, A. had a credit note issued in favor of C. Ltd. and at the expense of the plaintiff. After the discovery of this transaction, the plaintiff dismissed A. with immediate effect on 16 January 1998. The plaintiff then brought an action for damages against A. for an amount of FF 226,198.69 and DM 10,730.85, plus interest. A. filed a counterclaim for unpaid salary and compensation for unfair dismissal.Considerations
The Cantonal Court upheld the main claim and partially upheld the counterclaim. The Higher Court of the Canton of Zug reduced the amount owed to the plaintiff, finding that A. had not violated his duty of loyalty in carrying out the commercial transaction through his wife's company, but that he had failed to fulfill his contractual obligations by issuing the credit note in favor of another group…