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Unpaid Sales Commissions in Illinois May Warrant Punitive Damages...
In Illinois, a law known as the Illinois Sales Representative Act may force a "principal" (as defined in the Act) to pay unpaid commissions due plus punitive damages and attorneys' fees and costs. A very strong law to help unpaid sales reps.
"Principal" is defined as a sole proprietorship, partnership, corporation or other business entity whether or not it has a permanent or fixed place of business in this State and which:
(A) Manufactures, produces, imports, or distributes a product for sale;
(B) Contracts with a sales representative to solicit orders for the product; and
(C) Compensates the sales representative, in whole or in part, by commission.
At least one Illinois Court has interpreted the mandatory award of attorneys' fees and costs in the event a principal fails to timely pay commissions due a sales rep. That Court found that the award of attorneys' fees and costs was not punitive in nature but was "compensatory."
In addition, at least one Court has interpreted the Illinois Sale Representative Act (the "Act") to hold that solicitation of orders occurring outside the State of Illinois after 1990 is covered by the Act. See Circuit Systems, Inc. v. Mescalero Sales, Inc., 925 F.Supp. 546, 549 (N.D. Ill. 1996). That is, so long as the constitutional minimum contacts test is satisfied, such "foreign" orders shall fall under the protection of the Act. See id.
If you meet the definition of a "sales representative"
Visit http://www.CounselorOffices.net to learn more.
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Philip Berenz is a Chicago trial attorney truly committed to assisting individuals and businesses with securing all available remedies and compensation for injuries and disputes and defending them when necessary. Visit http://www.CounselorOffices.net to learn more.