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Oakville Ltd/Tenants of Oakville S. Centre, Clonmel [1993] IECA 260 (15th December, 1993)
Notification
No: CA/840/92E - Oakville Limited/Tenants of Oakville Shopping Centre, Clonmel
Decision
No: 260
Introduction
1. Notification
was made by Oakville 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
a refusal by the Competition Authority to issue a certificate, a licence under
Section 4(2) in respect of leases between Oakville Limited and the tenants at
Oakville Shopping Centre, Clonmel.
The
Facts
(a) Subject
of the notification
2. The
notification concerns the leases relating to 9 shop units in Oakville Shopping
Centre, Upper Gladstone Street, Clonmel, Co. Tipperary between Oakville Limited
as landlord and the tenants.
(b) The
parties involved
3. Oakville
Limited is the owner and landlord of the Oakville Shopping Centre. The tenants
are engaged in various retail and service activities at the shopping centre.
(c) The
notified arrangements
4. The
standard shopping centre lease notified contains the following restricted user
clauses viz.
(a) Under
clause 4(24) the tenant covenants with the landlord "Not to assign, charge or
underlet a part only of the demised unit in any circumstances and not to part
with or share possession of either the whole or part of the demised unit except
on such assignment or underletting of the whole as hereafter authorised."
(b) Under
clause 4(25) the tenant covenants with the landlord "Not to assign or underlet
the whole of the demised unit except with the previous consent in writing of
the Landlord..."
(c) Under
clause 4 (27) the tenant covenants with the landlord "Throughout the said term
to keep open and use and occupy the demised unit as a
provided that with the previous consent of the Landlord (not to be unreasonably
withheld) the demised unit may be used for some other retail trade or
business...."
In
addition, there are a number of other standard restrictive covenants and
obligations in the lease.
5. Oakville
Ltd has furnished details of the permitted user attaching to each lease whereby
the tenant is restricted to particular specified retail or service activities.
Assessment
- The Applicability of Section 4(1)
6. The
Authority considers that Oakville Limited and the tenants are undertakings and
that the notified leases are agreements between undertakings. The agreements
have effect within the State.
7. The
Authority considers that the notified agreements, and their restricted and
exclusive user clauses and the other standard restrictive clauses and
obligations, do 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, l993 in respect of shopping centre leases (Iris Oifigiuil of l0
September, l993, pp. 665-667). The Authority therefore considers that the
notified agreements between Oakville Limited and its tenants do not offend
against Section 4(1) of the Competition Act, l99l.
The
Certificate
8. 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 agreements between Oakville Limited and its tenants in
relation the lease of premises at Oakville Shopping Centre, Upper Gladstone St,
Clonmel, Co. Tipperary notified under Section 7 on 30 September, l992
(Notification No. CA/840/92E), do not offend against Section 4(1) of the
Competition Act, l99l.
For
the Competition Authority
Des
Wall
Member
15
December 1993
© 1993 Irish Competition Authority
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URL: http://www.bailii.org/ie/cases/IECompA/1993/260.html