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Michigan has a very strong public policy embodied by state law protecting
sales representatives commissions. Specifically, a principal is obligated to pay any sales commissions due and owing
within 45 days of termination of a manufacturer's sales representative. If the principal fails to pay in a
timely fashion, the sales representative can utilize the punitive provisions of this statute to seek recovery of three
times the amount of actual damages up to a certain limit. SPB has successfully represented several clients on a number
of cases in this arena. Key to effective advocacy in this area is discovery of the nature of the relationship
between the representative and the principal. Often times a claim should be made not just for overdue commissions at
the time of termination but for commissions extending for several years into the future. Because of Michigan's involvement
in the auto industry many sales representatives are involved with Tier I, Tier II, or Tier III suppliers. SBR has
been very successful representing its clients throughout the state in these cases.
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