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Melincourt Ltd/D Horkan Ltd [1993] IECA 179 (3rd December, 1993)
Notification
No: CA/817/92E - Melincourt Ltd/D. Horkan Ltd
Decision
No: 179.
Introduction
1. Notification
was made by D. Horkan Limited on 30 September, 1992 with a request for a
certificate under
Section 4(4) of the
Competition Act, 1991 or, in the event of
a refusal by the Competition Authority to issue a certificate, a licence under
Section 4(2), in respect of a lease between Melincourt Limited and D. Horkan Ltd.
The
Facts
(a) Subject
of the notification
2. The
notification concerns the lease of unit no. 1 at Huntstown Shopping Centre,
Pinewood House, Huntstown Rd, Mulhuddart, Co. Dublin between Melincourt Limited
as Landlord and D. Horkan Ltd as tenant.
(b) The
parties involved
3. D.
Horkan Limited trading as Huntsdown Newsagency is engaged in the business of
Newsagent at Unit 1. Melincourt Limited is the landlord of the shopping centre.
(c) The
notified arrangements
4. The
notified lease was made on 28 September, 1990 for a period of 500 years from 1
August, 1990. The restricted user clauses in the lease are as follows:
(a) Under
clause 6.24.1 the tenant covenants with the landlord "Not to assign, transfer,
underlet or part with possession or occupation of part only of the Demised
Unit."
(b) Under
clause 6.25.1 the tenant covenants with the landlord "Not without the prior
consent in writing of the Landlord or its agent thereunder lawfully authorised
which consent shall not be unreasonably withheld or delayed to use or to permit
or suffer or allow the Demised Unit or any part or parts thereof to be used for
any purpose other than as set forth in Part II of the First Schedule hereto and
for no other purpose or purposes whatsoever ...... Provided Always And It Is
Hereby Agreed And Declared that upon any application by the Tenant or any
under-tenant of the Tenant for liberty to alter or change the aforesaid
permitted user of the Demised Unit the Landlord shall not unreasonably withhold
its consent......."
(c) Under
clause 11 the Landlord covenants with the tenant that
"1. The
Permitted User set out in Paragraph II of the First Schedule hereto is
exclusive to the Tenant where so indicated and the Landlord and the Management
Company hereby covenant and undertake with the Tenant to ensure that such
exclusivity (where indicated) continues without interruption or interference
throughout the term of this Lease.
2.
The
Landlord and the Management Company hereby covenant and undertake with the
Tenant that they shall not cause or permit any part of the Estate to be used
for any purpose which would interrupt or interfere with the Tenant's
exclusivity (where appropriate) as aforesaid".
(d) In
the First Schedule, Part II, of the lease the permitted user is defined as
follows:
"(a) Exclusive
User
Newsagents,
including groceries, confectionery, tobacco, toys, cards, lottery and Dublin
Bus Agents.
(b)
Non
Exclusive User
Cakes, software, books, stationery and photocopying services".
In
addition, there are a number of other standard restrictive covenants and
obligations in the lease.
Assessment
- The Applicability of Section 4(1)
5. The
Authority considers that D. Horkan Limited and Melincourt Limited are
undertakings and that the notified lease is an agreement between undertakings.
The agreement has effect within the State.
6. The
Authority considers that the notified agreement, and its restricted and
exclusive user clauses and the other standard restrictive clauses and
obligations, does not have the object or effect of preventing, restricting or
distorting competition in trade in any goods or services in the State or in any
part of the State, for the reasons given in the Notice of the Authority of 2
September 1993 in respect of shopping centre leases (Iris Oifigiuil 10
September 1993, pp.665-667). The Authority therefore considers that the
notified agreement between D. Horkan Limited and Melincourt Limited does not
offend against
section 4(1) of the
Competition Act, l99l.
The
Certificate
7. The
Competition Authority has issued the following certificate:
The
Competition Authority certifies that in its opinion, on the basis of the facts
in its possession, the agreement between D. Horkan Limited and Melincourt
Limited in relation to the lease of the premises at Huntstown Shopping Centre,
Huntstown Rd, Mulhuddart, Co. Dublin notified under
Section 7 on 30 September
1992 (notification no. CA/817/92E), does not offend against
Section 4(1) of the
Competition Act, l99l.
For
the Competition Authority
Des
Wall
Member
3
December 1993
© 1993 Irish Competition Authority
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URL: http://www.bailii.org/ie/cases/IECompA/1993/179.html