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]
Michael Reilly & Sons Ltd (now Nabol Developments Ltd)/ Doyles Shoe Centre Ltd [1993] IECA 239 (15th December, 1993)
Notification
No. CA/1100/92E - Michael Reilly and Sons Ltd (now Nabola Developments
Ltd)/Doyles Shoe Centre Ltd
Decision
No. 239
Introduction
1. Notification
was made by Doyles Shoe Centre Ltd 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 Michael Reilly and Sons Ltd (now
Nabola Developments Ltd) and Doyles Shoe Centre Ltd.
The
Facts
(a) The
subject of the notification
2. The
notification concerns the lease of shop units 3/4 at Maynooth Shopping Centre,
Maynooth, Co. Kildare between Michael Reilly and Sons Ltd (now Nabola
Developments Ltd) as landlord and Doyles Shoe Centre Ltd as tenant.
(b) The
parties involved
3. Michael
Reilly and Sons Ltd was engaged in the letting of shop units at Maynooth
Shopping Centre. Its successor in title, Nabola Developments Ltd is now
similarly engaged. Doyles Shoe Centre Ltd trades as a shoe shop at the
shopping centre.
(c) The
notified arrangements
4. The
notified shopping centre lease was executed on 10 September 1982 for a period
of 30 years from 20 August 1982. The restricted user clauses in the lease are
as follows:
(a) Under
clause 10 section III of the agreement the tenant covenants "To use the
demised premises for the purpose of the sale of Ladies', Gents' and Children's
Shoes and Footwear only save and except all sports shoes and sports footwear
and not without the consent in writing which shall not be unreasonably withheld
to use or permit or suffer the same or any part thereof to be used for any
other purpose ......."
(b) Under
clause 12 section III the tenant covenants "not to assign sublet part with or
share possession of a part (as distinct from the whole) of the demised premises
under any circumstances whatever or the whole of the demised premises without
the prior consent in writing of the Landlord (such consent not to be
unreasonably withheld)...."
(c) Under
clause 4 Section IV the Landlord covenants "that for so long as the premises
are used for the purpose set out at Clause 10 of
Section 3 hereof the Lessor
covenants with the Lessee that it will not permit a similar user in any other
premises which form part of Maynooth Shopping Centre."
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 Michael Reilly and Sons Ltd were and its successors in
title Nabola Developments Ltd and Doyles Shoe Centre 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 restricted and
exclusive user clauses and the other 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 Reilly and Sons Ltd (now Nabola Developments Ltd) and Doyles
Shoe Centre Ltd 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 Michael Reilly and Sons Ltd (now
Nabola Developments Ltd) and Doyles Shoe Centre Ltd in relation to the lease of
the premises at Units 3 and 4 Maynooth Shopping Centre, Maynooth, Co. Kildare
notified under
Section 7 on 30 September 1992 (notification no. CA/1100/92E),
does not offend against
Section 4 (1) of the
Competition Act, 1991.
For
the Competition Authority
Des
Wall
Member
15
December 1993
© 1993 Irish Competition Authority
BAILII:
Copyright Policy |
Disclaimers |
Privacy Policy |
Feedback |
Donate to BAILII
URL: http://www.bailii.org/ie/cases/IECompA/1993/239.html