History: P.A. 05-166 effective July 1, 2005.
Sec. 42-482. Termination of contract between sales representative and principal. Payment of commissions due. Failure to pay. Civil action. (a) In the event a
contract between a principal and a sales representative is terminated, the principal shall
pay to the sales representative all commissions (1) that are due on or before the effective
date of such termination, by the date specified in the contract or thirty days after the
effective date of termination, whichever is later, and (2) that are due after the effective
day of such termination, by the date specified in the contract but not later that thirty
days after such commission becomes due under the terms of such contract.
(b) Any principal who wilfully, wantonly, recklessly or in bad faith fails to pay any
commissions due in accordance with the provisions of subsection (a) of this section
shall be liable in a civil action brought by a sales representative for twice the full amount
of the commission owed to such sales representative.
(c) The failure of a principal to respond to the written demand by a sales representative for commissions owed to the sales representative not later than thirty days after
such principal receives such written demand shall create a rebuttable presumption that
such principal acted wilfully and in bad faith provided such written demand is sent to
such principal by certified mail.
(d) The prevailing party in any action brought pursuant to subsection (b) of this
section shall be entitled to reasonable attorney's fees and court costs.
(e) Any principal who establishes a business relationship with a sales representative
to solicit orders for products or services in this state shall be deemed to be doing business
in this state for purposes of establishing jurisdiction over such principal in an action
brought pursuant to subsection (b) of this section.
(P.A. 05-166, S. 2.)
History: P.A. 05-166 effective July 1, 2005.
Sec. 42-483. Acceptance of partial commission not deemed a release. The acceptance by a sales representative of a partial commission payment from a principal
shall not constitute a release by such sales representative of any other commissions
which such sales representative claims are due except if such payment is made pursuant
to a binding and final written settlement agreement and release. Any full release of all
commissions claimed to be owed by a sales representative as a condition to a partial
commission payment shall be null and void.
(P.A. 05-166, S. 3.)
History: P.A. 05-166 effective July 1, 2005.
Sec. 42-484. Waiver of provisions not allowed. Construction and applicability.
(a) Any provision in a contract between a sales representative and a principal that provides for the waiver of any provision of sections 42-482 and 42-483 shall be void.
(b) Nothing in sections 42-482 and 42-483 shall be construed to invalidate or restrict
any right or remedy available to a sales representative or preclude a sales representative
from seeking to recover in one action all claims against such principal.
(c) Nothing in sections 42-482 and 42-483 shall be construed to apply to an insurance producer or producer, as defined in section 38a-702a, or to an insurer, as defined
in section 38a-1.
(d) Nothing in sections 42-482 and 42-483 and this section shall be construed to
apply to any person who holds a real estate salesperson's license and who has a claim
for payment of a real estate commission or compensation against the real estate broker
with whom such real estate salesperson is affiliated.
(P.A. 05-166, S. 4.)
History: P.A. 05-166 effective July 1, 2005.