Where the commercial agent has conducted Alan Ramsay Sales and Marketing Limited v Typhoo Tea multiple agencies it will be necessary to identify the [2016] EWHC 486 (Comm) Limited future variable costs associated with the running of the terminated commercial agency in order to ascertain its future likely profitability. Those costs may, where appropriate, be broadly identified by comparing the variable costs incurred prior to and after the termination of the commercial agency Account also have to be taken of the Alan Ramsay Sales and Marketing Limited v Typhoo Tea overheads/fixed costs incurred in connection with Limited [2016] EWHC 486 (Comm) the running of the commercial agency. In doing so the court should not necessarily assume that the notional purchaser will be a start up operation but may assume that the notional purchaser will be an already established business incurring overheads/fixed costs already. However, even in such a case the court should still deduct an appropriate element of overheads/fixed costs in identifying likely future profitability of the commercial agency Whether a claim under Regulation 8 will affect the Software Incubator Ltd v Computer Associates Ltd [2016] extent of any payable under EWHC 1587 “compensation” Regulation 17 will depend on whether the existence Monk v Largo Foods Ltd [2016] EWHC 1837 of that claim would influence what a hypothetical purchaser might pay for the agency will depend on the facts Extent of 'compensation' and, possibly, 'indemnity' Lonsdale v Howard & Hallam Ltd [2007] UKHL 32 likely to be determined in accordance with expert McQuillan v McCormick [2010] EWHC 1112 evidence Risk that commercial agency might be terminated as McQuillan v McCormick [2010] EWHC 1112 a result of the principal's loss of its distributorship of the products the subject of the agency is to be taken into account A commercial agency may actually not have any Warren v Drukkerij B.V. [2014] EWCA Civ 993 value in a particular case Unclear whether principles of mitigation have any Tigana Ltd v Decoro Ltd [2003] EWHC 23 place when assessing 'compensation’ payable Lonsdale v Howard & Hallam Ltd [2007] UKHL 32
Where the commercial agent has conducted multiple agencies it will be necessary to identify the future variable costs associated with the running of the terminated commercial agency in order to ascertain its future likely profitability. Those costs may, where appropriate, be broadly identified by comparing the variable costs incurred prior to and after the termination of the commercial agency Alan Ramsay Sales and Marketing Limited v Typhoo Tea Limited [2016] EWHC 486 (Comm) Account also have to be taken of the overheads/fixed costs incurred in connection with the running of the commercial agency. In doing so the court should not necessarily assume that the notional purchaser will be a start up operation but may assume that the notional purchaser will be an already established business incurring overheads/fixed costs already. However, even in such a case the court should still deduct an appropriate element of overheads/fixed costs in identifying likely future profitability of the commercial agency Alan Ramsay Sales and Marketing Limited v Typhoo Tea Limited [2016] EWHC 486 (Comm) Whether a claim under Regulation 8 will affect the extent of any “compensation” payable under Regulation 17 will depend on whether the existence of that claim would influence what a hypothetical purchaser might pay for the agency will depend on the facts Software Incubator Ltd v Computer Associates Ltd [2016] EWHC 1587 Monk v Largo Foods Ltd [2016] EWHC 1837 Extent of 'compensation' and, possibly, 'indemnity' likely to be determined in accordance with expert evidence Lonsdale v Howard & Hallam Ltd [2007] UKHL 32 McQuillan v McCormick [2010] EWHC 1112 Risk that commercial agency might be terminated as a result of the principal's loss of its distributorship of the products the subject of the agency is to be taken into account McQuillan v McCormick [2010] EWHC 1112 A commercial agency may actually not have any value in a particular case Warren v Drukkerij B.V. [2014] EWCA Civ 993 Unclear whether principles of mitigation have any place when assessing 'compensation’ payable Tigana Ltd v Decoro Ltd [2003] EWHC 23 Lonsdale v Howard & Hallam Ltd [2007] UKHL 32
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