Lonsdale v Howard & Hallam Ltd.

Lonsdale v Howard & Hallam Ltd.

Compensation for a commercial agent under Regulation 17(6) is to be assessed by reference to the value of the agency business, including goodwill, at the date of termination, taking into account the state of the principal’s business. There is no general rule or guideline that compensation should be two years’ gross commission. The judge’s broad brush approach, awarding £5,000 in light of the declining business and available evidence, was correct.

Parties
Claimant: Graham Lonsdale; Defendant: Howard & Hallam Limited
Jurisdiction
England and Wales
Judgment Date
08 February 2006
Procedural Posture
Civil Appeal / Judgment on Appeal From County Court
Outcome
Appeal dismissed
Legal Topics
Commercial Agents, Compensation on Termination, Goodwill Valuation, Implementation of EU Directives
Commercial Law Agency Law European Law Commercial Agents Compensation on Termination Goodwill Valuation Implementation of EU Directives

Case Brief

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Parties

Graham Lonsdale

Claimant

Howard & Hallam Limited

Defendant

Procedural Posture

Civil Appeal / Judgment on Appeal From County Court

Legal Issues

  1. 1 How compensation under Regulation 17(6) of The Commercial Agents (Council Directive) Regulations 1993 should be assessed
  2. 2 Whether there is a general rule or guideline that compensation should be two years’ gross commission
  3. 3 Whether the state of the principal’s business at termination affects the value of the agency and compensation

Ratio Decidendi

Compensation for a commercial agent under Regulation 17(6) is to be assessed by reference to the value of the agency business, including goodwill, at the date of termination, taking into account the state of the principal’s business. There is no general rule or guideline that compensation should be two years’ gross commission. The judge’s broad brush approach, awarding £5,000 in light of the declining business and available evidence, was correct.

Court Disposition

Appeal dismissed

Orders

  • The appeal is dismissed; the compensation award of £5,000 stands.