LONSDALE (T/A LONSDALE AGENCIES) V HOWARD & HALLAM LIMITED

[2007] UKHL 32, Lord Bingham of Cornhill, Lord Hoffmann, Lord Rodger of Earlsferry, Lord Carswell, Lord Neuberger of Abbotsbury, 4 July 2007

Agency agreement – Termination – Compensation – Calculation of loss – Commercial Agents (Council Directive) Regulations 1993 – Art 17, Council Directive 86/653/EEC of 18 December 1986 – Whether reference to European Court of Justice was appropriate

A commercial agent sought compensation for a terminated agency. Statements in a Commission report evaluating the implementation of the Directive would not be taken to endorse the French method of implementation, although the provision had some roots in French law and practice. The French principles of calculation derived from French market practice which differed from that in Britain. The compensation to which the commercial agent was entitled would be calculated based on the notional value of the agency.