DAVID FRAPE v. EMRECO INTERNATIONAL LIMITED [2001] ScotHC 74 (2nd August, 2001)

DAVID FRAPE v. EMRECO INTERNATIONAL LIMITED [2001] ScotHC 74 (2nd August, 2001)

The word 'termination' in the Commercial Agents (Council Directive) Regulations 1993 must be interpreted purposively to include contracts that expire by effluxion of time, not just those actively terminated. This interpretation is necessary to ensure the social protection of commercial agents and to fulfil the harmonisation objectives of the Directive. Therefore, the pursuer is entitled to claim compensation or indemnity under Regulation 17, even though the contract ended on reaching the fixed term (age 65).

Citation
[2001] ScotHC 74
Parties
Pursuer: David Frape; Defender: Emreco International Ltd
Jurisdiction
Scotland
Procedural Posture
Civil (commercial Agency Dispute) / Interlocutory Judgment on Interpretation of 'termination' and Entitlement to Compensation; Proof Before Answer Allowed
Outcome
Pursuer's motion upheld; proof before answer allowed; defenders' relevant pleas-in-law repelled; further hearing on expenses required.
Legal Topics
Interpretation of 'termination' Under Commercial Agents Regulations, Entitlement to Compensation or Indemnity on Expiry of Fixed Term Agency Contract, Purposive Construction of EU Derived Legislation, Harmonisation of Law for Commercial Agents
Commercial Law Agency Law European Union Law Interpretation of 'termination' Under Commercial Agents Regulations Entitlement to Compensation or Indemnity on Expiry of Fixed Term Agency Contract Purposive Construction of EU Derived Legislation Harmonisation of Law for Commercial Agents

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 2 Authorities cited 20 Party arguments 2
Sign in to unlock

Parties

David Frape

Pursuer

Emreco International Ltd

Defender

Procedural Posture

Civil (commercial Agency Dispute) / Interlocutory Judgment on Interpretation of 'termination' and Entitlement to Compensation; Proof Before Answer Allowed

Legal Issues

  1. 1 Does the expiry of a fixed-term commercial agency contract constitute 'termination' under the Commercial Agents (Council Directive) Regulations 1993, entitling the agent to compensation or indemnity?
  2. 2 Should 'termination' be interpreted purposively to include expiry by effluxion of time?

Ratio Decidendi

The word 'termination' in the Commercial Agents (Council Directive) Regulations 1993 must be interpreted purposively to include contracts that expire by effluxion of time, not just those actively terminated. This interpretation is necessary to ensure the social protection of commercial agents and to fulfil the harmonisation objectives of the Directive. Therefore, the pursuer is entitled to claim compensation or indemnity under Regulation 17, even though the contract ended on reaching the fixed term (age 65).

Court Disposition

Pursuer's motion upheld; proof before answer allowed; defenders' relevant pleas-in-law repelled; further hearing on expenses required.

Orders

  • Uphold pursuer's third plea-in-law to the extent of deleting specified words from Answer 4.
  • Repel defenders' pleas-in-law 2 and 9.