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Dunnes Stores has filed a Supreme Court action aimed at preventing a rival retailer from continuing to sell food and grocery products from a unit in a retail park in Carlow.
Dunnes Stores claims that the sale of food products, in a location that is next to one of its outlets, violates a restrictive agreement contained in the lease agreements for units in the Barrow Valley Retail Park, Sleaty Road in Carlow.
The alleged violation has resulted in Dunnes Stores Unlimited Company and Camgill Property Ltd, which is the owner of the retail park, suing Dafora Unlimited Company and Corajio Unlimited Trading as Mr Price Branded Bargains.
The court heard that earlier this year Dafora acquired the lease of a unit in the park, which is next door to the unit operated by Dunnes Stores. Dafora then allowed Corajio to trade from the unit under the trade name Mr Price Branded Bargains.
The plaintiffs, represented in court by Mr. Martin Hayden SC and Roland Rowan, claim that in 2005 and 2007 Dunnes entered into, as part of an agreement to be the park’s primary tenant, lease agreements with the former owners of the commercial park .
Those leases are alleged to contain a restrictive covenant that prevented any other unit in the park from being used as a supermarket, discount food store or mini food market.
It is alleged that, in violation of the agreement, late last month, Mr. Price began selling a variety of food and grocery products and groceries from his unit in the Park.
Both Dunnes Stores and the managing company of the retail park are alleged to have contacted the defendants to ask them to stop selling food products.
They claim that the defendants are bound by the terms of the pact.
Cordon off
The court heard that correspondence from the defendants, who had offered to cordon off the food products pending resolution of the dispute, but argued that Dunnes Stores had no right to enforce the agreements.
As a result of the defendants’ alleged failure to desist from selling food and groceries from the unit, the plaintiffs are seeking a court order from the Superior Court preventing the defendants from breaching the terms of the lease.
They are also seeking an order preventing the defendants from selling food, groceries or groceries from the unit.
In Superior Court on Thursday night, Judge Leonie Reynolds granted the plaintiffs permission, ex parte, to notify the defendant of the process on short notice.
The judge adjourned the matter to a date next week.
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