The High Court has considered how and when an agency agreement comes to an end in the absence of a clear termination date. The claimant acted as the defendant’s exclusive agent, and attained orders in the United Kingdom and Republic of Ireland. The...
Suppliers and distributors sometimes join forces to restrict the sale of products in different markets or the prices at which those products are sold. But they might be surprised to learn that what they are doing can be illegal. Nintendo...
The European Self Employed Agents Directive allowed member states the opportunity to specify that a commercial agent may be entitled to either an indemnity or compensation payment in certain circumstances on termination. While the majority of...
The extent to which account is to be taken of factors extraneous to the agency in determining the compensation payable to an agent is at the heart of the recent McQuillan judgment. McQuillan concerned the distributor and one of his agents for the...
Volvo Car Germany GmbH v. Autohof Weidensdorf GmbH (C-203/09, 28 October 2010) Principals will find it even harder to avoid paying compensation to terminated agents under the Commercial Agents Regulations following a recent European Court decision. ...
In answer to the ever-tricky question of where to sue the agent in the context of a modern commercial agency agreement where the agent operates in more than one EU country, the Court in Wood Floor Solutions GmbH v Silva Trade SA set out a three-stage...
Non-compliance with a principal’s reasonable instructions can put an agent in all sorts of difficulties. This is especially so where an agent is unwilling to change working practices. This is the result of the recent case of Gledhill v Bentley Designs,...
Introduction "You are a despicable, horrible little excuse for a human being" was part of the statement made by Mr Gledhill to the managing director of his principal, Bentley Designs. Leaving aside the issue of whether such a statement...
Although the Commercial Agents Regulations have been in force for over 16 years, many important issues remain to be resolved. Among these issues are: 1. What are “goods”? This is important as the Regulations define a ...
This case highlights the importance of making sure that your activities are properly that of an agent or principle, if that is your intention. Factual Background Mr Sagal entered into an agreement with Bunz whereby Mr Sagal would procure sales of Bunz...
Following two recent cases, it is now apparent that agents must be very clear when they are giving notice to their principals of their intention to claim for compensation or an indemnity under the Commercial Agents Regulations. In both cases the agents lost...
Jackson Distribution Limited (“Jackson”) was the sole distributor of Tum Yeto Inc’s (“TYI”) range of “Dekline” products in the United Kingdom and the Republic of Ireland from March 2005. The distribution...
Background In 1990 Howard & Hallam Limited, a shoe manufacturer, appointed Mr Lonsdale as its sales agent for their Elmdale brand of shoes. By 2000 the Elmdale brand was in decline: sales, and, consequently, Mr Lonsdale’s commission, fell...
Background Mr. Kelvin Jack is an international goalkeeper from Trinidad and Tobago. Imageview Management Ltd (“Imageview”), a footballer’s agency, owned by Mr. Mike Berry, acted for Mr. Jack. In July 2004 Mr. Jack decided that he wanted...
This case in the English courts was concerned with the matter of whether an agent’s notification to his principal was sufficient to stop the clock running on the one year limitation period following termination. Although the relevant governing law...
Facts Raoul Sagal (“Sagal”) claimed that he had acted as a commercial agent for Atelier Bunz GMBH (“Bunz”) within the meaning of the Commercial Agents (Council Directive) Regulations 1993 (the “Regulations”) in...
The Facts Groupe Danone appointed an agent to represent its subsidiaries (the “Defendants”) in their dealings with importers, wholesalers and retailers of their goods in a specific geographical area, including Mayotte and La Reunion (a...
Visualmark acted as agent for BCM Group for the promotion and sale of office equipment under the terms of a written agency agreement signed in 2001 which contained post-termination restrictive covenants. In 2002, there was an exchange of letters...
This case concerned the appeal to the Court of Appeal by International Connection (UK) Limited (“ICL”) against the order of His Honour Judge Knight QC in the Central London County Court. Mr Edwards was a salesman, who specialised in the sale...
The claimant, Tony Vick, was employed by the defendant company, Vogle-Gapes Ltd, in 1996 as a salesman. In 1999 he gave up his employment and became a sales agent for Vogle-Gapes. The agency agreement came to an end in April 2004, the circumstances of...
One of the most recent cases concerning the Commercial Agents Regulations decided by the High Court has gone some way to clarifying three aspects of the Regulations which previously had given rise to dispute. Unfortunately in doing so it leaves open...
Written by Jane Elliot 19 July 05 The Commercial Agents Regulations address what happens when an agent dies, retires or is prevented from working due to illness or injury. Yet whilst the Regulations deal briefly with each of these issues, they...
Written by Steve Sidkin 19 July 05 A significant difference between being self-employed as opposed to an employee is that the self-employed can chose when to stop work because of retirement. In contrast stopping work because of infirmity or...
The key issue to be decided was whether the Defendant had, by its conduct, repudiated the agency agreement, allowing the Defendant to accept such repudiation, treat the agreement as terminated and make the claim. Background The Defendant was part of a...
Ingmar had acted as Eaton Leonard’s exclusive agent for the sale of its tube and pipe bending machines and associated equipment for the aircraft and automotive industries in the United Kingdom and Ireland since 1989. In 1996, Eaton Leonard...
Scottish Power appointed Taskforce as its agent for the sale of gas and electricity to domestic customers by doorstep selling. A few years later, Scottish Power appointed Taskforce as its agent for the sale of gas and electricity branded...
The Claimant (Abbott) had been in business as a commercial agent in the fashion trade for approximately 43 years. Abbott retired in December 2000 aged 65 and a half. Abbott had had a contract with Condici for 18 years and with the second defendant for 5...
Written by Steve Sidkin 16 September 04 Although it is often found surprising, and it is clearly different to the position of commercial agency agreements, the fact is that there is no statutory requirement for the length of notice required in order to...
Mr Gailey was engaged by Environmental Waste Controls, suppliers of waste compaction and handling equipment, to procure sales of such equipment in return for commission at a rate of 50 per cent. of such sales. Approximately five years later, Environmental...
Mr Smith worked for Reliance Water Controls Limited ("Reliance"), a wholesaler of plumbing and bathroom products, from September 1996 until he was summarily dismissed on 15 January 1999 for gross misconduct and breach of contract. He was a sales...
This case concerns an appeal by Ty Europe Limited ("Ty") from a High Court decision of Judge McGonigal concerning the status of sub-agents. The questions which arose were whether a sub-agent of a principal, who has no contractual relationship...
Written by Steve Sidkin 11 April 03 With the confused decision in Ingmar v Eaton Leonard the pendulum which had been swinging between agent and principal was sent into a spin. Accordingly it was hoped that the next High Court decision on interpreting...
The term “goods” forms a key part in the definition of a commercial agent under The Commercial Agents Regulations. Unfortunately the Regulations fail to define by what is meant by “goods”. This was the issue that lay at the...
Ms Caprini was a commercial agent for the sale of advertising space in Italy. She submitted a request to the office of the registrar of undertakings in Trento, Italy, for enrolment in the Italian register of undertakings in the category of...
Decoro was a Chinese manufacturer of leather furniture. Mr Coleman was a well established agent for leather furniture in the UK. Mr Coleman became aware of the products offered by Decoro thought his American contacts. He considered that...
Summary of the First Instance Decision The Claimant ("Bell") in this case was a company which did almost all of its business through its Managing Director, Mr Bell. The Defendant ("Aweco") was a large German manufacturing company...
Written by Steve Sidkin 11 April 02 Two of the most common forms of commercial relationships are supplier and distributor and principal and agent. In some parts of the European Union the protection afforded to distributor and agent is such that a...
The claimant argued that it had acted for twenty years as the defendant timber products manufacturer’s commercial agent. There had been a series of agreements between the parties. The most recent agreement expressly appointed the claimant as the...
Written by Steve Sidkin 1 November 01 When a Judge commences his judgment by explaining that he is giving it with some trepidation and that the area of law is not one in which he considers himself to be “over-practised”, it is unsurprising...
Written by Steve Sidkin 1 May 01 English lawyers are taught to strive for certainty. This concept operates hand in glove with the common law system which is precedent based. When it rubs up against a civil law system, however, the opportunities for...
Written by Jane Elliot 11 April 01 During the 1970's and early 1980's employment law swung from being pro-employer to pro-employee and back again. In comparison the pro-agent decision last year of the Scottish Court of Session in King -v-...
Barret McKenzie had acted as the agent of the fashion company, Escada, since December 1988. The agency agreement was summarily terminated by Escada in July 1998. The agent’s main claim was for compensation under the Commercial Agents Regulations...
Facts Centrosteel Srl (Centrosteel) acted as agent in Italy for the Austrian company Adipol GmbH (Adipol). On termination of the agency agreement, Centrosteel sought to recover payment of unpaid commission. Adipol refused to pay on the grounds that the...
Eastern Gas and Energy were two subsidiaries of Eastern Electricity plc. Tamarind was appointed by Eastern under written agreements for the purpose of pre-selling contracts to existing British Gas customers in anticipation of the free market brought about...
Mr King had acted as a commercial agent exclusively for Tunnock, a cake and biscuit manufacturer, since 1962. The agreement between the parties was terminated in 1994 when Tunnock closed its bakery section. Mr King commenced an action seeking payment in...
Mr King had acted as a commercial agent exclusively for Tunnock, a cake and biscuit manufacturer, since 1962. The agreement between the parties was terminated in 1994 when Tunnock closed its bakery section. Mr King commenced an action seeking payment in...
Mr Hackett had been a commercial agent for Advanced Medical Computer Systems Limited. Advanced Medical terminated Mr Hackett’s agency on 11 April 1994 without giving Mr Hackett the proper notice as required under the Commercial Agents (Council...
In 1983, Mr Roy and M R Pearlman (“MRP”) entered in a commercial agency agreement. Mr Roy was MRP’s sole selling agent in Scotland for a particular range of products, subject to certain terms and conditions. According to the...
Ukraine International Airlines appointed Pace as its general cargo agent. Pace in turn entered into an agreement with Aerotrans. Under the terms of this agreement Aerotrans was to market cargo space on UIA flights as Pace's general cargo sales agent...
Mr Devers was retained as an agent for Electricity Direct on 24 May 2000. Mr Devers carried on his agency business as a sole trader under the name Powerforce Marketing. The 24 May 2000 retainer letter stated that the agency agreement ran from...
Written by Steve Sidkin 1 June 98 Are commercial agents a down-trodden race? A recent Court of Appeal judgment concerning the Commercial Agents Regulations suggests that they are. The nature of the judgment was such that, if it is followed, a...
Written by Steve Sidkin 1 May 98 It is now more than 4 years since the Commercial Agents Regulations came into force. Since that time few cases have reached the British courts. Indeed, up until the end of 1996 none had been satisfactory decided. The...
Duffen was involved in the supply of products to the plumbing trade. Frabo SpA (“Frabo”) was a family run, Italian company which manufactured pipe fittings for the plumbing trade. With a view to entering the UK market towards the end of 1992,...
Mr Moore was recruited by Piretta PTA Ltd (“Piretta”) in January 1998, as a part of its sales drive in the UK for its range of Finnish fashion clothing. Moore initially signed a one year contract but he continued to work for Piretta...
Mr Parks was the tenant of a service station owned by Esso under an Esso Motor Fuels agency agreement. The terms of the agreement were that Mr Parks was obliged to buy all his motor fuels and lubricant requirements from Esso at prices charged by Esso,...
Imballaggi manufactured plastic packaging materials. In addition it imported such materials into the United Kingdom. There was no written agreement between the parties. It was clear from the evidence that Imballaggi had been prepared to do business with...
It is understandable that claims for compensation or indemnity made by agents under the Commercial Agents (Council Directive) Regulations 1993 (as amended) should lead principals to look to various defences. One of the most obvious defences is that the...
Written by Steve Sidkin 11 September 97 In December 1996 the European Court of Justice made its first decision concerning the European Self-employed Agents Directive. Its judgement was published in 1997. Whilst concerning the entitlement of an...
The claim was made by an area sales agent who was responsible for recruiting, supervising and training several double glazing sales agents for the effective marketing and selling of Zenith’s products. As such Mr Hunter did not directly undertake...
Mr Kingsley has worked for many years as an agent in the carpet industry. He acted as agent for KJC Carpets’ agent from 1988 to 1994. In September 1994, KJC Carpets terminated Mr Kingsley’s agency, having unilaterally reduced Mr...
Mr Page was a sole trader in essential oils. Since 1990 he had acted as agent for Combined Shipping & Trading Company Limited. In 1995 the parties had entered into a written agency contract which was for an initial term of 4 years. Only five months...
Before Ms Bellone was a commercial agent for Yokohama in Italy. Under Italian law, a person was not entitled to undertaken the activities of a commercial agent unless that person was entered in a register of commercial agents held by the local...
