RESTRICTION ON AGENT'S RENEWAL COMMISSION: AN UNREASONABLE RESTRAINT OF TRADE MARSHALL v N.M. FINANCIAL MANAGEMENT LTD.. (HIGH COURT CHANCERY DIVISION) JONATHAN SUMPTION QC SITTING AS DEPUTY HIGH COURT JUDGE
| Published date | 01 April 1996 |
| DOI | https://doi.org/10.1108/eb024898 |
| Date | 01 April 1996 |
| Pages | 397-403 |
| Subject Matter | Accounting & finance |
RESTRICTION
ON AGENT'S RENEWAL COMMISSION: AN
UNREASONABLE
RESTRAINT OF TRADE
MARSHALL
v N.M. FINANCIAL MANAGEMENT LTD.
(HIGH
COURT
CHANCERY
DIVISION)
JONATHAN
SUMPTION
QC
SITTING
AS
DEPUTY
HIGH
COURT
JUDGE
Date of Hearing: 18th May, 1995
Date of Judgment: 16th June, 1995
Reported at: [1995] 1
Weekly
Law
Reports
1461
THE FACTS
The
Plaintiff,
a self-employed sales
agent, was engaged on 21st Novem-
ber, 1980 by the Defendant, a finan-
cial services company selling life
assurance and pension policies. The
terms of his engagement were con-
tained in two successive contracts of
which the latter provided, inter alia,
(1) that he should be an independent
contractor remunerated by commis-
sion payable on premiums generated
by business introduced by him; (2)
that the relationship between the two
parties was that of agent and princi-
pal and (3) that that agency was an
exclusive one ie the plaintiff was not
entitled to act as agent for any other
principal. In addition, Clause 10(g)
of that contract provided as follows:
'If at the date of termination of this
agreement...the agent has for a
period of not less than five years
been continuously an agent of the
company and either:
(i) within the period of one year
after the date of such termination
the agent does not become an
independent intermediary or
become employed by or represent
or become an appointed represen-
tative of any company or organisa-
tion which may directly or
indirectly be in competition with
the company; or
(ii) at the date of termination the
agent (if an individual) has attained
the age of 65 years,
then the company shall pay to the
agent renewal commission arising
up to his death (in the event that
397
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