Rossetti Marketing Ltd v Diamond Sofa Company Ltd & Anor [2011] EWHC 2482 (QB) (03 October 2011)

Rossetti Marketing Ltd v Diamond Sofa Company Ltd & Anor [2011] EWHC 2482 (QB) (03 October 2011)

The Commercial Agents Regulations 1993 apply to agents acting for multiple and even competing principals, provided there is disclosure and consent. The existence of multiple principals does not exclude an agent from the statutory definition. The duties of good faith and loyalty are non-derogable but their content is...

Source-derived case information.

Citation
[2011] EWHC 2482
Parties
Claimant: Rossetti Marketing Ltd; First Defendant: Diamond Sofa Company Ltd; Second Defendant: Solutions Marketing Ltd
Jurisdiction
England and Wales
Judgment Date
03 October 2011
Procedural Posture
Commercial Contract Dispute / Trial of Preliminary Issues
Outcome
Declarations made on preliminary issues; claimant succeeds in establishing that the Regulations apply and that acting for multiple/competing principals does not exclude protection under the Regulations.
Legal Topics
Commercial Agents Regulations 1993, Agency for Multiple Principals, Breach of Contract, Compensation for Termination of Agency, Assignment and Novation of Agency Agreements
Commercial Law Agency Law European Union Law Commercial Agents Regulations 1993 Agency for Multiple Principals Breach of Contract Compensation for Termination of Agency Assignment and Novation of Agency Agreements

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Summary, issues, holding and outcome

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Parties

Rossetti Marketing Ltd

Claimant

Diamond Sofa Company Ltd

First Defendant

Solutions Marketing Ltd

Second Defendant

Procedural Posture

Commercial Contract Dispute / Trial of Preliminary Issues

  1. 1 Whether the Commercial Agents Regulations 1993 apply to an agent acting for multiple and competing principals
  2. 2 Whether the agency transfer from SML to RML was an assignment, novation, or new contract
  3. 3 Whether SML/RML's activities were secondary and thus excluded from the Regulations

Ratio Decidendi

The Commercial Agents Regulations 1993 apply to agents acting for multiple and even competing principals, provided there is disclosure and consent. The existence of multiple principals does not exclude an agent from the statutory definition. The duties of good faith and loyalty are non-derogable but their content is shaped by the contractual context. SML/RML were commercial agents within the meaning of the Regulations and their activities were not secondary. The agency transfer from SML to RML did not break continuity for the purposes of the Regulations.

Court Disposition

Declarations made on preliminary issues; claimant succeeds in establishing that the Regulations apply and that acting for multiple/competing principals does not exclude protection under the Regulations.

Orders

  • Declaration that SML/RML were commercial agents within the meaning of the Commercial Agents Regulations 1993.
  • Declaration that acting for multiple and competing principals does not exclude an agent from the protection of the Regulations.