H*2943(Rat #0546, Act #0489 of 1988)  General Bill, By Kirsh
 A Bill to amend Title 39, Code of Laws of South Carolina, 1976, relating to
 trade and commerce, by adding Chapter 65 so as to require an out-of-state
 principal to pay commissions owed to a sales representative within a certain
 period after a contract between them is terminated, provide for certain
 punitive damages and attorney's fees if post-termination commissions are not
 paid in a timely manner, provide for attorney's fees to be awarded against
 persons bringing frivolous actions, provide for personal jurisdiction over
 certain nonresident principals, and provide that any agreements which waive
 any of the requirements of this Chapter are void.

   04/14/87  House  Introduced and read first time HJ-1830
   04/14/87  House  Referred to Committee on Labor, Commerce and
                     Industry HJ-1831
   02/10/88  House  Committee report: Favorable with amendment Labor,
                     Commerce and Industry HJ-1025
   02/18/88  House  Amended HJ-1267
   02/18/88  House  Read second time HJ-1268
   02/23/88  House  Read third time and sent to Senate HJ-1353
   02/24/88  Senate Introduced and read first time SJ-20
   02/24/88  Senate Referred to Committee on Judiciary SJ-21
   04/06/88  Senate Committee report: Favorable with amendment
                     Judiciary SJ-130
   04/07/88  Senate Amended SJ-42
   04/07/88  Senate Read second time SJ-43
   04/07/88  Senate Ordered to third reading with notice of
                     amendments SJ-43
   04/14/88  Senate Amended SJ-193
   04/14/88  Senate  Read third time SJ-194
   04/14/88  Senate Returned SJ-194
   04/20/88  House  Concurred in Senate amendment and enrolled HJ-3119
   04/26/88         Ratified R 546
   05/02/88         Signed By Governor
   05/02/88         Effective date 05/02/88
   05/02/88         Act No. 489
   05/18/88         Copies available

AN ACT TO AMEND TITLE 39, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO TRADE AND COMMERCE, BY ADDING CHAPTER 65 SO AS TO REQUIRE AN OUT-OF-STATE PRINCIPAL TO PAY COMMISSIONS OWED TO A SALES REPRESENTATIVE WITHIN A CERTAIN PERIOD AFTER A CONTRACT BETWEEN THEM IS TERMINATED, PROVIDE FOR CERTAIN PUNITIVE DAMAGES AND ATTORNEY'S FEES IF POST-TERMINATION COMMISSIONS ARE NOT PAID IN A TIMELY MANNER, PROVIDE FOR ATTORNEY'S FEES TO BE AWARDED AGAINST PERSONS BRINGING FRIVOLOUS ACTIONS, PROVIDE FOR PERSONAL JURISDICTION OVER CERTAIN NONRESIDENT PRINCIPALS, AND PROVIDE THAT ANY AGREEMENTS WHICH WAIVE ANY OF THE REQUIREMENTS OF THIS CHAPTER ARE VOID.

Be it enacted by the General Assembly of the State of South Carolina:

Payment of post-termination claims to sales representatives

SECTION 1. Title 39 of the 1976 Code is amended by adding:

"CHAPTER 65

Payment of Post-termination Claims to Sales

Representatives

Section 39-65-10. As used in this chapter:

(1) 'Commissions' means compensation accruing to a sales representative for payment by a principal, the rate of which is expressed as a percentage of the amount of orders or sales or as a specified amount of each order or sale.

(2) 'Person' means an individual, corporation, partnership, association, estate, or trust.

(3) 'Principal' means a person who:

(a) manufactures, produces, imports, or distributes a tangible product for wholesale;

(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.

(4) 'Sales representative' means a person who:

(a) contracts with a principal to solicit wholesale orders;

(b) is compensated, in whole or in part, by commission;

(c) does not place orders or purchase for his own account or for resale; and

(d) does not sell or take orders for the sale of products to the ultimate consumer.

Section 39-65-20. When a contract between a sales representative and a principal is terminated for any reason, the principal shall pay the sales representative all commissions that have or will accrue under the contract to the sales representative according to the terms of the contract.

Section 39-65-30. A principal who fails to comply with the provisions of Section 39-65-20 is liable to the sales representative in a civil action for:

(1) all amounts due the sales representative plus punitive damages in an amount not to exceed three times the amount of commissions due the sales representative; and

(2) attorney's fees actually and reasonably incurred by the sales representative in the action and court costs.

Section 39-65-40. Where the court determines that an action brought by a sales representative against a principal under this chapter is frivolous, the sales representative is liable to the principal for attorney's fees actually and reasonably incurred by the principal in defending the action and court costs.

Section 39-65-50. A principal who is not a resident of this State who contracts with a sales representative to solicit orders in this State is deemed to be doing business in this State for purposes of the exercise of personal jurisdiction over nonresidents under Part 8, Chapter 2, Title 36.

Section 39-65-60. Nothing in this chapter invalidates or restricts any other right or remedy available to a sales representative or precludes a sales representative from seeking to recover in one action on all claims against a principal.

Section 39-65-70. A provision in any contract between a sales representative and a principal purporting to waive any provision of this chapter, whether by expressed waiver or by a contract subject to the laws of another state, is void.

Section 39-65-80. Any person bringing an action under the provisions of this chapter may not bring an action under the provisions of Section 41-10-10."

Time effective

SECTION 2. This act takes effect upon approval by the Governor.