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Richfield Investments Ltd/William and Ann Dolan [1993] IECA 251 (15th December, 1993)
Notification
No: CA/271/92E - Richfield Investments Ltd/ William and Anne Dolan
Decision
No: 251
Introduction
1. Notification
was made by William and Anne Dolan 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 a lease between Richfield Investments Ltd and
William and Anne Dolan.
The
Facts
(a) Subject
of the notification
2. The
notification concerns the lease of unit 21 at the Thomond Shopping Centre,
Roxboro, Limerick between Richfield Investments Ltd as landlord and William and
Anne Dolan as tenant.
(b) The
parties involved
3. Richfield
Investments Ltd is the owner and landlord of the Thomond Shopping
Centre,Roxboro, Limerick. William and Anne Dolan under the name Dolan's
Pharmacy trade as a retail pharmacist at the centre.
(c) The
notified arrangements
4. The
notified lease was made on 10 August 1976 for a period of 34 years from I
October 1974. The restricted user clauses in the lease are as follows:
(a) Under
clause C(12) the tenant covenants "To use the demised premises only for the
carrying on of the trade, provision of the services or sale by retail of the
goods set out in the Fourth Schedule hereto and not without the Landlord's
consent in writing to use or permit to suffer the same or any part thereof to
be used for the carrying on of any other trade, provision of any other service
or the sale of any other goods or for any other purpose whatever..."
(b) Under
clause c (14) the tenant covenants "(a) Not to assign, sub-let, part with or
share possession or occupation of the demised premises or any part thereof or
suffer any person to occupy or use the demised premises or any part thereof as
Licensee without the consent in writing of the Landlord being first obtained."
(c) Under
clause c(60) the Landlord covenants " ....not to demise any other portion of
the Roxboro Shopping Centre for use as a pharmacy (other than unit 21 to the
lessee)."
(d) In
the Fourth Schedule, the Limitation of User Clause states "The premises shall
be used as a Chemist shop only."
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 Richfield Investments Ltd and William and Anne Dolan
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, l993 in respect of shopping centre leases (Iris Oifigiuil of 10
September, l993, pp. 665-667). The Authority therefore considers that the
notified agreement between Richfield Investments Ltd and William and Anne Dolan
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 Richfield Investments Ltd and William
and Anne Dolan in relation to the lease of the premises at the Thomond Centre,
Roxboro, Limerick, notified under Section 7 on 30 September, l992 (notification
no. CA/271/92E), does 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/1993/251.html