In Lonsdale v Howard & Hallam, the Court of Appeal (CA) had to confront the thorny issue of calculation of ‘compensation’ under the Commercial Agents Regulations 1993 for the first time. The right of agents to a payment of damages on termination of their agency was the most far-reaching innovation under the Regulations and has led to much case law. The CA’s judgment in Lonsdale has swept away the previous case law and introduced a new test which focuses on the valuation of the agency at the date of termination. Many factors which were traditionally considered relevant will now be disregarded and vice versa.

The facts