The Commercial Agents (Council Directive) Regulations 1993 set out various duties and obligations for principals and commercial agents. Disputes can arise between principals and agents, particularly when the agency relationship breaks down and the agency agreement is terminated.
In many situations termination of the agency agreement under the Regulations will give rise to the right for the agent to be paid an indemnity or compensation. This in itself can cause issues over whether the agent is entitled to be paid at all and if so, how the amount should be calculated. Arguments can also arise relating to whether the agent has been given adequate notice and whether they are entitled to “pipeline” commission.
Working closely with the firm’s Commercial & Technology team, the Dispute Resolution group acts for and advises both principals and agents in relation to their duties and obligations under the Regulations. This often includes assisting with the negotiation and drafting of settlement agreements allowing the parties to part ways without the need for court proceedings.