Ingmar GB Ltd v Eaton Leonard Inc: QBD 31 Jul 2001

The applicants sought damages as commercial agents following the termination of their exclusive agency for the sale of the respondents goods in the UK. The defendants claimed the contract was governed exclusively by Californian law. The European Court had decided that the compensation could not be excluded by contract. The court had to assess damages.
Held: There was no duplication to award both compensation for the termination and payment of outstanding commissions. The absence of a non-derogation article meant that the parties could derogate from articles 7 and 8. The regulations must be read consistently across the UK. Whilst there is no rule, the French guideline that in many cases the two-year purchase of average gross commission may be appropriate could apply. In this case however three years was appropriate. To apply the two year rule would result in injustice to the defendants and an excessive windfall for the claimants. He therefore considered it appropriate to depart from the guideline
The Hon Mr Justice Morland
[2001] EWHC QB 3
Commercial Agents (Council Directive) Regulations 1993 (Regulations 7 and 8), Council Directive (EEC) 86/653
England and Wales
CitedPage v Combined Shipping and Trading Co Ltd CA 24-May-1996
Mr Page was taken on to trade in commodities for the defendant for a minimum period of four years. Six months later the defendant’s parent company decided to cease trading activities, and he began proceedings claiming compensation under regulation . .
CitedTamarind International Ltd and others v Eastern Natural Gas (Retail) Ltd and Another QBD 27-Jun-2000
Where self employed agents had been taken on to market the respondent’s services, and those agencies were terminated, such activities were those of commercial agents within the Directive, and they were entitled to compensation. Whether he was a . .
See AlsoIngmar GB Limited v Eaton Leonard Technologies Inc CA 31-Jul-1998
Case referred to ECJ. . .
At ECJIngmar Gb Ltd v Eaton Leonard Technologies Inc ECJ 16-Nov-2000
When a commercial agency was terminated in circumstances which under community law would entitle the agent to compensation, that compensation was payable even though the contract expressed itself to be governed by the law of California, and the . .

Cited by:
CitedLonsdale v Howard and Hallam Ltd CA 8-Feb-2006
The claimant sought damages after his agency with the defendants was terminated. The central issue was whether compensation was to be calculated at two years commission as derived from French practice or otherwise.
Held: ‘there is no clear . .

These lists may be incomplete.
Updated: 19 April 2021; Ref: scu.159880