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, and the contractual context is clear. The existence of multiple or competing principals does not exclude an agent from the protection of the Regulations. The agency...

Source-derived case information.

Citation
[2011] EWHC 2482 (QB)
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
Claimant entitled to proceed under the Commercial Agents Regulations 1993; preliminary issues resolved in favour of claimant.
Legal Topics
Commercial Agents Regulations 1993, Agency for Multiple Principals, Competing Principals, Compensation on Termination, Fiduciary Duties, Good Faith and Loyalty, Assignment and Novation of Agency Contracts
Commercial Law Agency Law European Union Law Commercial Agents Regulations 1993 Agency for Multiple Principals Competing Principals Compensation on Termination Fiduciary Duties +2 more

Source-derived case record

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

Legal 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, and the contractual context is clear. The existence of multiple or competing principals does not exclude an agent from the protection of the Regulations. The agency transfer from SML to RML was not an assignment but a novation or new contract, and the activities were not secondary so as to exclude the Regulations' application.

Court Disposition

Claimant entitled to proceed under the Commercial Agents Regulations 1993; preliminary issues resolved in favour of claimant.

Orders

  • Declaration that the Commercial Agents Regulations 1993 apply to the agency relationship between the claimant and first defendant.
  • Declaration that acting for multiple or competing principals does not exclude the claimant from the Regulations.