PJ Pipe & Valve Co. Ltd. v Audco India Ltd.

PJ Pipe & Valve Co. Ltd. v Audco India Ltd.

PJV was the effective cause of the Bonny Island and Nanhai orders and is entitled to commission at 4.5% for Bonny Island phases 4, 5, and 6, and 3% for Nanhai. PJV qualifies as a commercial agent under the Regulations and is entitled to compensation for early termination. The commission is not limited to orders precisely identified in the Frame Agreement but covers all stainless steel and alloy gate, globe, and check valves for Nanhai. Compensation is calculated based on the average commission for one further successful introduction during the unexpired agency period.

Parties
Claimant: PJ Pipe & Valve Co. Limited; Defendant: Audco India Limited
Jurisdiction
England and Wales
Judgment Date
02 September 2005
Procedural Posture
Commercial/contractual Dispute / Judgment After Full Trial
Outcome
Judgment for the Claimant (PJV)
Legal Topics
Agency Agreements, Commission Entitlement, Repudiatory Breach, Commercial Agents (council Directive) Regulations 1993, Calculation of Compensation, Effective Cause Doctrine
Commercial Law Contract Law Agency Law Agency Agreements Commission Entitlement Repudiatory Breach Commercial Agents (council Directive) Regulations 1993 Calculation of Compensation +1 more

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Parties

PJ Pipe & Valve Co. Limited

Claimant

Audco India Limited

Defendant

Procedural Posture

Commercial/contractual Dispute / Judgment After Full Trial

Legal Issues

  1. 1 What is the appropriate commission rate for Bonny Island Project phases 4 & 5?
  2. 2 Is PJV entitled to commission or damages for Bonny Island Project phase 6?
  3. 3 Was PJV a commercial agent under the Commercial Agents (Council Directive) Regulations 1993 and what compensation is due?

Ratio Decidendi

PJV was the effective cause of the Bonny Island and Nanhai orders and is entitled to commission at 4.5% for Bonny Island phases 4, 5, and 6, and 3% for Nanhai. PJV qualifies as a commercial agent under the Regulations and is entitled to compensation for early termination. The commission is not limited to orders precisely identified in the Frame Agreement but covers all stainless steel and alloy gate, globe, and check valves for Nanhai. Compensation is calculated based on the average commission for one further successful introduction during the unexpired agency period.

Court Disposition

Judgment for the Claimant (PJV)

Orders

  • PJV awarded 4.5% commission on Bonny Island Project phases 4 & 5 (US$ 285,876.85)
  • PJV awarded 4.5% commission on Bonny Island Project phase 6 (US$ 105,907.24)