Pannone's Dispute Resolution team has extensive experience in advising both commercial agents and their principals in respect of their contractual rights and obligations under the Commercial Agents (Council Directive) Regulations 1993.
There are many different types of agency and not every agent is a commercial agent as defined under the Regulations.
When an agent is a “commercial agent” the Regulations provide a legislative framework which governs some of the core components of the agency relationship, including the respective duties of the parties, remuneration of the agent and notice periods for termination of the agency.
Most notably, the Regulations provide for the payment of compensation or an indemnity to the agent on termination of the agency. It is in this area that significant disputes can often arise between principals and their agents.
We advise both principals and agents in respect of all aspects of the Regulations, both before and after termination of the agency relationship. We regularly advise on the following issues:
- whether the agent is a “commercial agent” under the Regulations
- whether the principal’s liability upon termination is to pay compensation or an indemnity and the amount which may be payable
- in cross-border transactions (the relationships between principals and their agents often cross international boundaries), whether the Regulations apply to the relationship, and which court has jurisdiction. See further International Disputes
- whether the agent’s conduct justifies immediate termination of the agency
We also provide:
- strategic input to commercial clients who wish to terminate their relationships with agents. It is critical for principals who are planning to terminate to obtain early advice in order to understand and minimise their potential exposure
- support to our Commercial team who can assist you in relation to the drafting of agency and distribution agreements
We are committed to helping clients achieve early resolution of their disputes, including via mediation where appropriate.
We have relationships with some of the leading barristers in the field of commercial agency. Our relationships with expert accountants also ensure that, in circumstances requiring a valuation of an agent's business pursuant to the principles in Lonsdale v Howard and Hallam, we are able to obtain swift input at a proportionate cost.
Our experience
Recent cases have involved:
- acting for a commercial agent in relation to the termination of his agency by an American principal, where the agency covered Europe, Russia, the Middle East and Africa
- securing compensation of £600,000 for a commercial agent upon the termination of its agency by a supplier of a global supermarket chain. Our client was the sole agent for the principal's UK and Ireland business. The claim settled at mediation before proceedings were commenced
- acting for a UK specialist materials manufacturer in relation to the termination of its relationship with a commercial agent based in Germany. Following the termination of the agency we advised our client on a negotiated settlement with its agent
- advising a commercial agent in relation to the termination of his agency by a leading UK high-street fashion brand
To speak with a solicitor in the Dispute Resolution team please click here or call us on 0800 840 4929.
