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ArdenHeath Company Ltd/ Brendan and Sheila Doherty and Declan O'Brien [1993] IECA 92 (13th October, 1993)
COMPETITION
AUTHORITY
Notification
No. CA/205/92E - ArdenHeath Company Ltd/ Brendan and Sheila Doherty and Declan
O’Brien
Decision
No. 92
Price £0.30
£0.70 incl. postage
Notification
No: CA/205/92E - Ardenheath Company Ltd/Brendan and Sheila Doherty and Declan
O'Brien.
Decision
No: 92
Introduction
1. Notification
was made by Brendan Doherty on 29 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 Ardenheath Company Ltd and Brendan
and Sheila Doherty and Declan O'Brien (Doherty/O'Brien).
The
Facts
(a) Subject
of the notification
2. The
notification concerns the lease of unit no. 5 in Mount View Shopping Centre,
Blanchardstown, Dublin 15 between Ardenheath Company Limited as Lessor and
Doherty/O'Brien as lessee.
(b) The
parties involved
3. Doherty/O'Brien
to whom the lessee interest was assigned in July 1991 trade as Victuallers at
Unit 5 Mount View Shopping Centre. Ardenheath Company Limited is the owner and
landlord of the Mount View Shopping Centre.
(c) The
notified arrangements
4. The
notified lease was made on 13 December 1982 for a term of 33 years from 1
November, 1982. The restricted user clauses in the lease are as follows:
(a) Under
clause b.10 the tenant covenants with the landlord
"Subject
to clause 14 of the Third Schedule hereto to use the demised premises for the
purpose of Victuallers and not without the lessor's consent in writing which
shall not be unreasonably withheld to use or permit or suffer the same of any
part thereof to be used for any other purpose".
(b) Under
clause b.12 the tenant covenants with the landlord
"Not
to assign sub-let part or share possession of the demised premises or any part
thereof without the lessors prior consent, which consent shall not be
unreasonably withheld".
(c) Under
clause 14(c) of the Third Schedule the tenant covenants with the landlord
"Not
to change the user of the demised premises to any trade or business the same or
similar to any trade or business being carried on in any other shop, unit or
units at Mount View Shopping Centre without prior consent of the lessor in
writing".
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 Ardenheath Company Limited and Doherty/O'Brien 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 Arden Heath Company Limited and Brendan and Sheila
Doherty and Declan O'Brien 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 Ardenheath Company Limited and Brendan
and Sheila Doherty and Declan O'Brien in relation to the lease of the premises
at Mount View Shopping Centre, Blanchardstown, Dublin 15 notified under
Section
7 on 29 September 1992 (notification no. CA/205/92E), does not offend against
Section 4(1) of the
Competition Act, l99l.
For
the Competition Authority
Des
Wall
Member
13
October 1993
© 1993 Irish Competition Authority
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URL: http://www.bailii.org/ie/cases/IECompA/1993/92.html