Facts
Since June 1982, G. had worked as a director/manager in the hairdressing salon of company X. SA in St. Gall. On August 23, 1995, he resigned effective September 30, 1995. On the same date, the entire salon staff, with the exception of the four apprentice hairdressers, also resigned. In response, X. SA terminated G.'s employment contract with immediate effect as of August 30, 1995. On October 1, 1995, G. opened his own hairdressing salon in the immediate vicinity of his former workplace. Since that date, all former employees of X. SA who had resigned on August 23, 1995 have been working there. G. subsequently brought an action for payment of the September 1995 salary, vacation pay, and compensation of at least two months' salary due to the unjustified immediate dismissal. X. SA acknowledged the vacation claim of 4,363.60 francs, but requested the dismissal of the rest of the claim and filed a counterclaim for damages of 19,990 francs related to the drop in sales in October 1995. On appeal, the Cantonal Court of St. Gall rejected G.'s claim for compensation for unjustified immediate dismissal, upheld the counterclaim to the extent of 10,789.15 francs, deducted the acknowledged vacation claim of 4,363.60 francs, and ordered G. to pay 6,425.55 francs plus interest.Considerations
a) When the important reason for the immediate termination of the employment contract lies in the contractually non-conforming behavior of one party, that party must, in accordance with Art. 337b para. 1 CO, fully compensate the other party, taking into account all claims arising from the employment contract. The party that terminated the contract is generally entitled to the interest on performance until the next ordinary expiry of the notice period (consid. 5a). However, in the present case, the damage calculated by the lower instance in application of Art. 337b CO does not result from the premature…