Practice Areas
When has a salesperson legally earned a commission?
Numerous industries rely on the services of commission-based personnel to function and prosper. These individuals and entities in turn rely on the promise of a commission to forgo the security of guaranteed income. Unfortunately, commission-based personnel do not always receive the commissions they are promised. Disputes sometimes arise as to whether a broker, agent or sales professional has done enough to actually earn a commission. Whether a broker, agent or sales professional has done enough earn a commission can depend on several factors, including:
- The parties’ contract. The parties’ contract–often called an agent agreement–generally describes when and how commissions are to be paid. Where the contract language is clear, it is usually determinative. But contract language is often unclear and subject to interpretation. And even clear language can be undercut by the parties’ conflicting actions.
- The parties’ understanding. If there is no contract or if the parties’ contract does not clearly describe when and how commissions are paid, the parties may resort to evidence of the parties’ course of performance. This evidence typically consists of emails, letters, memoranda and other internal and external communications that demonstrate how the parties viewed their rights and obligations.
- State law. Somes states have laws that expressly govern when and how commissions must be paid. Even in states with these laws, however, disputes can arise as to what a broker, agent or sales professional did or failed to do to satisfy applicable legal requirements.
If you or your company is owed commissions that have not be paid, contact us for assistance. We can help you understand your legal rights and chart the best path forward for resolving your dispute.
DLM LAW has specialized expertise in automobile finance insurance (F&I) disputes.
With patience and hard work, you built your agency one dealer at a time. Now a problem you didn't anticipate threatens to take it all away. You don't need an attorney willing to learn on the job. You need someone who understands your business. The attorneys at DLM LAW have been representing clients in the F&l industry for decades and our results speak for themselves. We have taken on some of the largest players in the industry and recovered millions of dollars in arbitrations and in litigation throughout the United States.