Sales Commission Claims
The Huntsville area is home to many companies in the automotive, aerospace, and other highly skilled industries. Our local economy is largely based on the production and sale of advanced products and components. Many manufacturers hire independent sales representatives to develop valuable customer relationships.
These independent sales representatives usually work for a sales commission. Once retained, the representative often spends substantial amounts of time, effort and personal money to develop customers for the manufacturer. This work can involve months or years of effort to develop the customer relationship before a commission is earned.
Most manufacturers honor commission contracts with independent sales representatives. However, a few manufacturers abuse the relationship and refuse to pay full or continued commissions. Once the customer relationships are secure, these manufacturers attempt to cut the independent representative from continued commissions.
The Alabama Legislature considered it important to protect independent sales representatives from potential abuse. Our Legislature passed a law to remedy the problem – the Alabama Sales Representative’s Commission Contracts Act.
Under the Alabama Sales Representative’s Commission Contracts Act, businesses must pay the independent representative commissions based on the terms of their agreement or industry customs. Alabama law allows representatives who suffer damage to recover treble damages (three times actual damages) plus attorneys’ fees in claims over wrongfully unpaid commissions.
Alabama law on this issue is complex and little understood. Few attorneys have participated in claims for unpaid commissions under Alabama’s specific law. However, we have that experience at the Blackwell Law Firm. We work hard to advise sales representative dealing with a manufacturer that refuses to honor its commission obligations. We would be happy to discuss the issues with you. If you need more information, please feel free to ask us questions. You can also read articles we’ve posted on our legal blogs. If you need legal help, we will work hard to investigate the business relationships and develop your unpaid commission claim. We are committed to obtaining full compensation for the damages suffered by your business.