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Civil Engineers (Ireland) Ltd/ William & Josephine Donovan [1993] IECA 70 (5th October, 1993)
COMPETITION
AUTHORITY
Competition
Authority Decision of 5 October 1993 relating to a proceeding under Section 4
of the Competition Act, l99l.
Notification
No: CA/512/92E - Civil Engineers (Ireland) Ltd/William and Josephine Donovan.
Decision
No: 70
Price
£0.30
£0.70 incl. postage.
Notification
No. CA/512/92E - Civil Engineers (Ireland) Ltd/William and Josephine Donovan
Decision
No. 70
Introduction
1. Notification
was made by William Donovan on 30 September 1992 with a request for a licence
under
Section 4(2) of the
Competition Act 1991 in respect of a lease between
Civil Engineers (Ireland) Ltd and William and Josephine Donovan trading as
Donovans.
The
Facts
(a) The
subject of the notification
2. The
notification concerns the lease of Shop Unit A at Greenfield Shopping Centre,
Maynooth, Co. Kildare between Civil Engineers (Ireland) Ltd as Lessor and
William Donovan.
(b) The
parties involved
3. Civil
Engineers Ireland is the Landlord and lessor of shop units at Greenfield
Shopping Centre. William and Josephine Donovan, trading as Donovans, trades as
a newsagent/tobacconist at the shopping centre.
(c) The
notified arrangements
4. The
lease notified was executed on 18 August 1986 for a term of 500 years from 25
March 1983 between Civil Engineers (Ireland) Ltd as Lessor and William Donovan
as lessee. The restricted user clauses in the lease are as follows:-
(a) under
clause 10 the tenant is permitted to use the premises as a newsagency and
tobacconist including retail sales of Toys and Stationery and covenants "and
not without the Lessor' 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 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 Lessor such consent not to be unreasonably withheld."
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 Civil Engineers (Ireland) Ltd and William and
Josephine Donovan, trading as Donovans, 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 Civil Engineers (Ireland) Ltd and William Donovan
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 Civil Engineers (Ireland) Ltd and
William and Josephine Donovan notified under
Section 7 on 30 September 1992
(notification no. CA/512/92E), does not offend against
Section 4 (1) of the
Competition Act, 1991.
For
the Competition Authority
Des
Wall
Member
5
October 1993
© 1993 Irish Competition Authority
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URL: http://www.bailii.org/ie/cases/IECompA/1993/70.html