• In the case of Case C-456/98 Centrosteel v Adipol [2000] ECR I-6007, the European Court of Justice found that Directive 86/653 precludes national law as to the validity of an agency contract which is conditional upon the agent entering in the appropriate register. Indirect effect applies to case law of Member States, thus the European court reaffirmed that national courts should interpret provisions as close to the Community law to be consistent with the results it aims to achieve.

Facts of Case C-456/98 Centrosteel v Adipol [2000] ECR I-6007

  • Centrosteel acted as a commercial agent on behalf of Adipol, pursuant to a contract they entered
  • After the contract was terminated, Centrosteel sought payment of unpaid commissions from Adipol
  • Adipol argued the contract in question was void as Centrosteel had not entered the register of commercial agents, as required under national law
  • In the previous judgment of Case C-215/97 Bellone v Yokohama [1998], the ECJ held that a national law making the validity of an agency contract conditional upon the agent entering in the appropriate register is contrary to Directive 86/653 regarding self-employed agents
  • The, Italian, national court believed this case and Directive would not apply to the present case as Directives do not carry horizontal direct effect

Issues in Case C-456/98 Centrosteel v Adipol [2000] ECR I-6007

  • Would previous case law of the European Court of Justice be applicable to present case law?

Held by the European Court of Justice

  • Holding in favour of Centrosteel, the contract was valid; the national law did not conform with Community law.

Findings of the Court

The aims and purposes of Community law must be interpreted by national courts, “whether adopted before or after the directive” [16]

The Italian Supreme Court already held a contract with an unregistered agency is not void:

  • “the Corte Suprema di Cassazione … following the judgment in Bellone, has changed its case-law so that a failure to comply with the obligation prescribed by Law No 204 to be entered in the register of commercial agents and representatives no longer entails the nullity of an agency contract in Italian law.” [17]

As the case follows on from the case law of the European court, and applies the Directive, the freedom of establishment will not be interfered with [18]

The Directive will preclude national law

  • “the Directive precludes national legislation which makes the validity of an agency contract conditional upon the commercial agent being entered in the appropriate register. [19]

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