Commissions - Manufacturers

Detroit Michigan Unpaid Sales Commission Defense Attorneys

Troy Detroit Michigan Sales Commission Dispute Attorneys

We've Recovered Millions of Dollars for Sales Reps

Under the MCLA 600.2961, "Michigan Sales Representatives Commission Act (SRCA)", independent sales representatives must be paid according to the terms of a written contract or according to an existing understanding already in place between a manufacturer and a sales representative. Commissions must be paid on time or in a timely manner. A manufacturer who withholds payment can be held liable for the amount of the commission itself plus twice its value up to $100,000 - whichever is less. For example, if a sales representative is owed $25,000, he or she could recover up to $75,000 under the SRCA. At law office of Stark Reagan, our lawyers assert the rights and protections of independent sales reps in cases involving withheld commissions or unreasonable delays on the part of manufacturers in paying commissions. When necessary, our attorneys subpoena internal company records and financial information to verify when auto parts, machinery, filters, gaskets, and other parts were ordered and used by a manufacturer.

We have the investigative resources and experience needed to help sales representatives leverage their case and demand compensation for the financial harm they've suffered. To schedule an appointment, contact the sales commission dispute attorneys at Stark Reagan today.

What if a Sales Representative Contract is Terminated?

If a manufacturer terminates a contract or fires a sales representative, under the terms of the SRCA, he or she must be paid within 45 days of the date of termination. Under the "procuring doctrine," commission is owed on a part for the life of the part. Consequently, a commission may still be owed on parts sold after the termination of a contract or while the life of the part is still in effect.

While sales rep contracts are not always written, an oral agreement is still a contract - especially when a supplier or manufacturer does nothing to reject the services of a sales representative. As such, under current interpretation of the SRCA, it's not necessary to establish an act of bad faith on the part of a supplier or manufacturer in failing to pay a commission. As such, inadvertent error or claims of accounting mistakes are not a defense against liability under the terms of the SRCA.

How Our Attorneys help Establish Your Case

Our office regularly works with investigators who are former FBI agents and are highly skilled in uncovering memos, electronic evidence, and documents establishing malfeasance on the part of suppliers and manufacturers who fail to pay sales rep commissions. In most sales commission disputes, however, investigation is not necessary. Once our attorneys notify a manufacturer or supplier that we intend to go to trial, many are willing to enter into mediation or negotiation to avoid court costs and unwanted scrutiny. Since under the terms of the SRCA, a manufacturer or supplier is also responsible for the attorneys' fees of a sales representative, many often prefer to settle a case rather than face litigation.

Withholding Sales Commission is a Breach of Contract

Failure to pay a sales commission constitutes a breach of contract that is actionable under the law. As commercial litigation attorneys, we've represented both sales representatives and manufacturers in sales commission disputes. As a result, we understand the issues on both sides and what must be done to expose dishonesty and obfuscation on the part of manufacturers and suppliers.

To schedule an appointment and learn how we can help you, contact sales commission dispute lawyers at Stark and Reagan today.