Unite the Union v Liverpool Victoria Banking Services Ltd & Ors

Unite the Union v Liverpool Victoria Banking Services Ltd & Ors

Commission is payable to Unite only where there is a causal connection between the Services (as defined in the agreements, i.e., marketing and advice to union members enabled by the union's provision of access) and the earning of the premium. Commission is not payable on all sales to union members regardless of channel, nor is it limited strictly to sales through dedicated channels. The phrase 'in respect of the Services' requires a factual inquiry into whether the Services were an effective cause of the sale.

Parties
Claimant: Unite the Union; Defendants: Liverpool Victoria Banking Services Limited and others
Jurisdiction
England and Wales
Judgment Date
20 January 2014
Procedural Posture
Commercial Dispute / Judgment After Trial
Outcome
Claim dismissed in part; declaration sought by Unite refused; counterclaim not granted at this stage; parties to agree order on quantum.
Legal Topics
Construction of Commission Clauses, Affinity Agreements, Estoppel by Convention, Breach of Contract, Counterclaim for Repayment
Contract Law Commercial Law Construction of Commission Clauses Affinity Agreements Estoppel by Convention Breach of Contract Counterclaim for Repayment

Case Brief

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Parties

Unite the Union

Claimant

Liverpool Victoria Banking Services Limited and others

Defendants

Procedural Posture

Commercial Dispute / Judgment After Trial

Legal Issues

  1. 1 Proper construction of commission clauses in affinity agreements between Unite and LV
  2. 2 Whether Unite is entitled to commission on all sales to union members or only those through dedicated channels
  3. 3 Whether Unite is estopped by convention from claiming commission on all sales

Ratio Decidendi

Commission is payable to Unite only where there is a causal connection between the Services (as defined in the agreements, i.e., marketing and advice to union members enabled by the union's provision of access) and the earning of the premium. Commission is not payable on all sales to union members regardless of channel, nor is it limited strictly to sales through dedicated channels. The phrase 'in respect of the Services' requires a factual inquiry into whether the Services were an effective cause of the sale.

Court Disposition

Claim dismissed in part; declaration sought by Unite refused; counterclaim not granted at this stage; parties to agree order on quantum.

Orders

  • Unite not entitled to declaration for commission on all sales regardless of channel.
  • LV not entitled to repayment of advance commission at this stage; quantum to be determined or agreed.