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Michael Kavanagh/D Horkan Ltd [1993] IECA 190 (3rd December, 1993)
Notification
No CA/815/92E - Michael Kavanagh/D.Horkan Ltd
Decision
No. 190.
Introduction
1. Notification
was made by D. Horkan Limited on 30 September, l992 with a request for a
certificate under Section 4(4) of the Competition Act, l99l or in the event of
refusal by the Competition Authority to issue a certificate, a licence under
Section 4(2), in respect of a lease between Michael Kavanagh and D.Horkan Ltd.
The
Facts
(a) The
subject of the notification
2. The
notification concerns the lease of Unit 1, Orwell Shopping Centre, Templeogue,
Dublin 6 between Michael Kavanagh as Landlord and D. Horkan Ltd as tenant.
The
parties involved
3. Michael
Kavanagh is stated to be the landlord of shop units at Orwell Shopping Centre.
D. Horkan Limited, which acquired the leasehold interest in 1992, trades as a
newsagency under the name "Newsextra" at the centre.
The
notified arrangements
4. The
notified shopping centre lease was made on 20 June 1975 between Viscount
Securities Ltd as landlord and Duffy Group Ltd as tenant, for a term of 35
years. The restricted user clauses in the lease are as follows:
(a) Under
clause 4.11 the tenant covenants "Not at any time to permit or allow the
consumption of or sale of food on the demised premises."
(b) Under
Clause 4.12 of the lease the tenant covenants "To use the demised premises for
the purpose of the business of Newsagent, Confectioner and Tobacconist only and
not without the Landlord's consent in writing which may not be unreasonably
withheld to use or permit or suffer the same to be used for any other purpose."
(c) Under
clause 4.14 the tenant covenants "Not to assign sub-let part with or share
possession of the demised premises or any part thereof without the consent in
writing of the Landlord (such consent not to be witheld) AND provided ........"
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 Michael Kavanagh 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 Michael Kavanagh and D. Horkan 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 Michael Kavanagh and D. Horkan Limited
(trading as Newsextra) in relation to the lease of the premises at Orwell
Shopping Centre, Templeogue, Dublin 6 notified under Section 7 on 30 September
1992 (notification no. CA/815/92E), 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/1993/190.html