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Sales Representative Termination

The trial lawyers at Newmark Storms Dworak represent Sales Representatives, who are unfairly and unlawfully terminated. We are as tough as we are smart. We will fight for you.

Newmark Storms Dworak represents independent Sales Representatives, who are unfairly and unlawfully terminated. We are award-winning trial lawyers that are as tough as we are smart. We will fight for you.

There are few things more frustrating for a Sales Representative than when a manufacturer or wholesaler terminates the relationship after the Sales Representative expended considerable time and money creating a market for the product. The manufacturer or wholesaler continues to reap the rewards from the Sales Representative’s labors without compensation. Fortunately, the Minnesota legislature enacted the Minnesota Termination of Sales Representative Act (“MTSRA”) to protect independent Sales Representatives by limiting the circumstances under which their agreements may be terminated or not renewed.

Under the MTSRA, a manufacturer or wholesaler may terminate a sales agreement only with “good cause” and provided the manufacturer gives the Sales Representative notice of its intent to terminate at least 90 days before the expiration of the agreement, and 60 days in which to correct the reasons stated for termination. In short, there must be (1) good cause, (2) notice, and (3) an opportunity to cure. If a manufacturer or wholesaler does not have “good cause” to terminate the relationship, it must also renew the sales agreement or give written notice of its intent not to renew at least 90 days before the expiration of the agreement’s end date.  A sales agreement of indefinite duration is treated as an agreement of definite duration expiring 180 days after written notice of intent to terminate is given.

Importantly, the MTSRA also bars the manufacturer or wholesaler from using contract terms, such as choice of law provisions, to circumvent these important MTSRA’s requirements.  Thus, a Sales Representative may have a valid claim for unlawful termination under the MTSRA even where the agreement itself would otherwise seem to allow termination under its own terms.

Where a manufacturer or wholesaler violates the MTSRA, a Sales Representative is entitled to unpaid commissions, lost future commissions, and its legal costs, including the Sales Representative’s attorney fees.

MTSRA’s protections extend to Sales Representatives who are residents of Minnesota or maintain their principal place of business in Minnesota or whose sales territory includes all or part of Minnesota.

If you are a Sales Representative that has been unlawfully terminated, contact  Paul Dworak or Jeff Storms for a free consultation.  We are the trial lawyers you want on your side.