Commercial Agency Disputes

Waterfront understand the challenges that can stem from disputes between commercial agents and their principals. Commercial agency agreements are vital to many businesses and industries, yet conflicts can arise, especially when it comes to issues of termination and compensation. It is also an area where it is frequently necessary to navigate the significant complexities of the Commercial Agents (Council Directive) Regulations 1993.

Our team is able to provide strategic advice and effective representation for both commercial agents and businesses in all aspects of commercial agency law, with a particular focus on the resolution of agency disputes, claims for damages, and demands for compensation and indemnity payments following termination of an agency relationship.

The Commercial Agents Regulations

The Commercial Agents (Council Directive) Regulations 1993 are designed to protect the rights of commercial agents in the UK.   This legislation has European origins, but continues to apply post-Brexit   These regulations provide a framework for the relationships between commercial agents and principals, covering important areas such as:

1. Remuneration: The regulations set out a number of rules regarding agency remuneration, including entitlements to commission on transactions concluded after the termination of the agency relationship, where the agent was responsible for bringing in that business.
2. Termination:  The regulations make provision in relation to the termination of an agency including, in some cases, the imposition of minimum notice periods.
3. Compensation on Termination: Even where a principal is lawfully entitled to bring an agency to an end, the agent may be entitled to compensation or an indemnity under the regulations.  The basis upon which that entitlement is calculated is particularly complicated.  It can involve consideration of factors such as the agent’s contribution to the business, the duration of the agency, and the loss of future commissions.
4. Non-competition Clauses: The regulations also limit the scope of restraint of trade restrictions imposed on agents after the termination of the agency agreement.

How We Can Help

Whether you are a commercial agent facing termination or a business looking to protect your commercial interests, Waterfront offers tailored legal services to resolve disputes efficiently and effectively.

• Dispute Resolution: We can assist in resolving disputes through negotiation, mediation, and arbitration, helping both agents and principals avoid costly and time-consuming litigation.
• Court Proceedings: If the dispute cannot be resolved amicably, our team is able to represent you in court proceedings, with a view to securing a favourable outcome.
• Advice on Compensation Claims: We can provide advice and assistance if an agency contract has been or is about to be terminated, and if you wish to advance, or are facing, claims for commission payments, damages for wrongful termination, or compensation or an indemnity under the Commercial Agents Regulations.
• Contract Drafting and Review: We also can assist in drafting and reviewing commercial agency agreements, ensuring compliance with relevant law and protecting your business or agency’s interests.