NM Financial Management Ltd v Marshall [1997] EWCA Civ 1237 (13th March, 1997)

NM Financial Management Ltd v Marshall [1997] EWCA Civ 1237 (13th March, 1997)

The consideration for the payment of renewal commission was Mr Marshall's services in introducing business prior to termination, not the acceptance of the invalid restraint. Clause 10(g) should stand without the invalid provisos, and Mr Marshall is entitled to post-termination renewal commission.

Citation
[1997] EWCA Civ 1237
Parties
Defendant/appellant: NM Financial Management Limited; Plaintiff/respondent: Anthony Arthur Marshall
Jurisdiction
England and Wales
Procedural Posture
Civil Appeal / Appeal From High Court (chancery Division) to Court of Appeal
Outcome
Appeal dismissed
Legal Topics
Severance of Invalid Contract Terms, Restraint of Trade, Post Termination Commission, Consideration in Contract
Contract Law Employment Law Restrictive Covenants Severance of Invalid Contract Terms Restraint of Trade Post Termination Commission Consideration in Contract

Case Brief

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Parties

NM Financial Management Limited

Defendant/appellant

Anthony Arthur Marshall

Plaintiff/respondent

Procedural Posture

Civil Appeal / Appeal From High Court (chancery Division) to Court of Appeal

Legal Issues

  1. 1 Whether Mr Marshall is entitled to renewal commission after termination of the agency agreement despite not satisfying the invalid restraint of trade condition in Clause 10(g)
  2. 2 Whether Clause 10(g) should be struck out in its entirety or stand shorn of the invalid provisos

Ratio Decidendi

The consideration for the payment of renewal commission was Mr Marshall's services in introducing business prior to termination, not the acceptance of the invalid restraint. Clause 10(g) should stand without the invalid provisos, and Mr Marshall is entitled to post-termination renewal commission.

Court Disposition

Appeal dismissed

Orders

  • Appeal dismissed with costs
  • Application for leave to appeal to the House of Lords refused