BAILII is celebrating 24 years of free online access to the law! Would you
consider making a contribution?
No donation is too small. If every visitor before 31 December gives just £1, it
will have a significant impact on BAILII's ability to continue providing free
access to the law.
Thank you very much for your support!
[New search]
[Printable RTF version]
[Help]
Omni Park Ltd/Omni Med Ltd [1994] IECA 317 (21st April, 1994)
Notification
No.CA/16/93 - Omni Park Limited/Omni Med Limited.
Decision
No.317
Introduction
1. Notification
was made by Omni Park Limited on 26 April 1993 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 Omni Park Ltd and Omni Med Ltd.
The
Facts
(a) Subject
of the notification
2. The
notification concerns the lease of unit no. 87 Omni Park Centre, Swords Road,
Santry, Dublin 9 between Omni Park Ltd as landlord and Omni Med Ltd as the
tenant.
(b) The
parties involved
3. Omni
Park Ltd is the owner and landlord of the Omni Park Centre. Omni Med Ltd is
engaged in the provision of medical services to the public.
(c) The
notified arrangements
4. The
notified lease was made on 29 March 1993 for a period of 35 years from 8
September 1992. The restricted user clauses in the lease are as follows:
(I) Under
clause 4 (12) the tenant covenants with the landlord "Not to transfer assign
underlet mortgage charge hold in trust for another part with nor share
possession or control or occupation of the Property or any part thereof
SAVE
AND EXCEPT
as is permitted and subject to full compliance with the requirements set out..."
(II) Under
clause 4(21) the tenant covenants with the landlord
"(a) Not
to use the whole or any part of the Property ................
(v) for
the sale of food or foodstuffs
(vi) as
a restaurant
(vii) without
prejudice to the generality of sub-paragraph (v) and (vi) as a fried fish shop
or as a shop for the sale of hot food for consumption off the premises.
(viii) for
the sale of any intoxicating liquor ....................
(xii) as
a department store
(xiii) as
a barber's shop or hairdressing salon or beauty salon
(xiv) for
the retail sale of drugs on prescription
(xv) as
an opticians
(xvii) without
prejudice to the foregoing so as to contravene the Supermarket User Protection
Clause the Department Store User ProtectionClause or the Restaurant User
Protection Clause or
(xviii) subject
to paragraph (b) of this sub-clause otherwise than for the Permitted Use
(b)
Subject
as aforesaid not to use the whole or any part of the Property for any business
other than the Permitted Use without the previous consent in writing of the
Landlord which consent shall not be unreasonably withheld
(c)
Without
prejudice to the generality of sub-paragraph (xvii) of paragraph (a) of this
sub-clause of this clause to observe the Core Restrictions as defined in the
Supermarket User Protection Clause the Core Restrictions as defined in the
Department Store User Protection Clause and the Core Restrictions as defined in
the Restaurant User Protection Clause."
(III)
The Schedules contain the Core Restrictions involving covenants by the Landlord
not to use or permit the use in the centre by any other tenant of an area
exceeding 1,500 sq feet for the sale of foodstuffs, an area exceeding 5,000 sq.
feet as a department store and an area exceeding 2,000 sq. feet as a Restaurant
(excluding fast food shops and a coffee shop).
(IV) Under
clause 1(9) the permitted use is defined as " A surgery for general medical
practice to include family planning /Wellwoman services health screening
services occupational health services sports medicines services pre-employment
medical reports and examinations public liability medical reports and services
life assurance medical services and also vaccination services. Notwithstanding
the foregoing neither the whole nor any part of the Property may be used for
the retail sale of drugs on prescription or as an opticians "
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 Omni Park Ltd and Omni Med Ltd 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 restrictive 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 Omni Park Limited and Omni Med Limited does not
offend against
Section 4(1) of the
Competition Act,1991.
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 Omni Park Limited and Omni Med Limited
in relation to the lease of the premises at Omni Park Centre, Swords Road,
Santry, Dublin 9, notified under
Section 7 on 26 April 1993 (notification no.
CA/16/93), does not offend against
Section 4(1) of the
Competition Act,1991.
For
The Competition Authority
Des
Wall
Member
21
April, 1994.
© 1994 Irish Competition Authority
BAILII:
Copyright Policy |
Disclaimers |
Privacy Policy |
Feedback |
Donate to BAILII
URL: http://www.bailii.org/ie/cases/IECompA/1994/317.html