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Dealer sues distributor over £200k unpaid commission

Paul Withers
June 3, 2013

The Dispatch Unit claims EE airtime distributor Midland Distribution unfairly terminated commission payments

The Dispatch Unit is taking Midland Distribution to court after failing to settle a dispute over unfair termination and £200,000 in unpaid commission.

Last month, the Manchester- based dealer instructed its solicitor to issue court proceedings against the EE airtime distributor.

It is the latest legal dispute between The Dispatch Unit and EE since its Orange account was suspended last October.

Midland stated at the time that the decision was taken over alleged complaints made to Ofcom, but The Dispatch Unit disputed these and said an internal investigation revealed no complaints had been made.

The dealer was told by Midland it would no longer receive any ongoing revenue share payments made from its base from the end of October, which the firm said would cost it an estimated £600,000 in commission losses.

However, Midland continued to pay commission until March. The Dispatch Unit claims it is still owed around £200,000.

Subsequent discussions between the two companies failed to resolve the issue, and The Dispatch Unit has said it will now seek redress through the courts.

A spokesperson for The Dispatch Unit said: “We’ve lost patience with this and instructed our solicitor to issue court proceedings. Payments were being made and we were in a position to meet with Midland last month to resolve these issues, but nothing materialised, meaning we’re still owed at least £200,000.

“We now don’t believe anything will be resolved outside of the legal route but we’re 95 per cent certain we will receive some payment. The fact Midland paid for five consecutive months demonstrates it knows it needs to pay us.”

Midland declined to comment on the latest developments.

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