Saturday, May 5, 2012

Ingmar GB v. Eaton Leonard Technologies case brief

Ingmar GB v. Eaton Leonard Technologies 

Commercial Agents Directive

-Commercial Agents are intermediaries who either sell products or negotiate contracts of sale to third parties on behalf of principals.  Sales k is entered into directly between the principal and the third party.
-Goal of the CAD is to achieve equal conditions of competition in the common market by fixing uniform rules for commercial agents.

FACTS
-P was appointed D’s commercial agent.  Choice of law in k required application of California law. -After k terminated, P sued for damages pursuant to article 7 of directive. 
 

ISSUE 
Whether directive’s indemnity on termination provisions were mandatory, overriding customary application of choice of law clause. 

HOLDING
Yes, directive's indemnity was mandatory.

ANALYSIS

-Regime in directive, protecting commercial agent after termination of k.  Mandatory in nature.
-It is essential for the Community legal order that a principal established in a non-member country, whose commercial agent carries on his activity within the Community, cannot evade those provisions by the simple expedient of a choice of law clause.

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