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.” See Maher and Assoc., Inc. v. Quality Cabinets , 267 Ill.App.3d 69, 640 N.E.2d 1000 (2nd Dist. 1994). Therefore, principals beware–not only could you lose a matter brought against you for non-timely payment of commissions (and potentially be found liable for punitive, or exemplary damages, up to 3 times the amount of commissions due) but you may also end up paying the sales rep’s attorneys’ fees and costs which could, technically, exceed all commissions due!
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