My law partner just completed a case for an independent sales representative in Huntsville. While every case is unique, the basic story of manufacturers denying commissions to independent sales representatives is far too common. It is a basic story I addressed previously on this blog. It’s a common story I’ve discussed in numerous articles. As I wrote previously, “what the manufacturer often wants is the profit of a customer relationship with no expense, including the expense of paying the agreed-upon sales commissions.”
In Biblical terms, we often read of sowing the seeds, tending the fields, and then eventually reaping the harvest. The farmer working in the fields rises early. He works countless hours to plant and tend the fields. He earns nothing during this time. Yet, with much hard work (and a little cooperation from the weather) harvest comes. That is the time of reward. It is the same with independent sales representatives.
These representatives work hard for their manufacturer clients. They search for business opportunities. They cultivate these opportunities. They invest years of their own time and resources. Then, only after much personal work and investment, a deal is made that greatly benefits the manufacturer. This is the point when everyone should receive their reward. That means everyone, including the sales rep who worked so hard for the deal. For the sales representatives this means they should receive their hard-earned commissions.
Many manufacturers honor their agreements and pay their independent representatives. But, a few manufacturers choose the wrong path. A few manufacturers choose to forget or ignore the representatives who worked so hard to cultivate the sale. These manufacturers cut costs by cutting earned commissions. This is unjust.
The Alabama Legislature makes many mistakes. But, in this area the Alabama Legislature did it right. Alabama, and many other states, have laws that protect certain independent sales representatives. In Alabama, the protections of this law allow treble damages and attorneys fees. While independent sales representatives are frequently the victims of greed, our law allows a remedy and protects their hard work.
At the Blackwell Law Firm, we have experience helping victims of financial fraud. This includes independent sales representatives denied their commissions. If you are a victim, let us help. We are happy to answer your questions and help with your case.