Meagher & Anor v. Luke J. Healy Pharmacy Ltd. [2005] IEHC 120 (15 April 2005)

Meagher & Anor v. Luke J. Healy Pharmacy Ltd. [2005] IEHC 120 (15 April 2005)

The plaintiffs unreasonably and wrongfully withheld consent to the assignment of the lease to Cellular World Ltd., in breach of the implied statutory covenant under s. 66 of the Landlord and Tenant (Amendment) Act, 1980. The plaintiffs' actions, including delays and refusals, were motivated by considerations outside the landlord-tenant relationship. The defendant is entitled to damages for losses suffered as a result of this breach, measured from the date the assignment should have been permitted.

Citation
[2005] IEHC 120
Parties
Plaintiffs: Denis Meagher & Miriam Meagher; Defendant/counterclaimant: Luke J. Healy Pharmacy Limited (later Hickeys Pharmacy (Drogheda) Ltd.)
Jurisdiction
Ireland
Judgment Date
15 April 2005
Procedural Posture
High Court Civil Action / Judgment After Trial
Outcome
Declaration for defendant/counterclaimant; damages awarded
Legal Topics
Assignment of Lease, Withholding of Consent, Repairing Covenants, Damages for Unreasonable Withholding of Consent, Implied Statutory Covenants
Landlord and Tenant Law Contract Law Assignment of Lease Withholding of Consent Repairing Covenants Damages for Unreasonable Withholding of Consent Implied Statutory Covenants

Case Brief

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Parties

Denis Meagher & Miriam Meagher

Plaintiffs

Luke J. Healy Pharmacy Limited (later Hickeys Pharmacy (Drogheda) Ltd.)

Defendant/counterclaimant

Procedural Posture

High Court Civil Action / Judgment After Trial

Legal Issues

  1. 1 Whether the plaintiffs (landlords) unreasonably withheld consent to assignment of lease to proposed assignees, particularly Cellular World Ltd.
  2. 2 Whether the defendant (tenant) is entitled to damages for losses suffered due to unreasonable withholding of consent
  3. 3 Whether the plaintiffs' actions were motivated by considerations outside the landlord-tenant relationship

Ratio Decidendi

The plaintiffs unreasonably and wrongfully withheld consent to the assignment of the lease to Cellular World Ltd., in breach of the implied statutory covenant under s. 66 of the Landlord and Tenant (Amendment) Act, 1980. The plaintiffs' actions, including delays and refusals, were motivated by considerations outside the landlord-tenant relationship. The defendant is entitled to damages for losses suffered as a result of this breach, measured from the date the assignment should have been permitted.

Court Disposition

Declaration for defendant/counterclaimant; damages awarded

Orders

  • Declaration that plaintiffs unreasonably and wrongfully withheld consent to assignment to Cellular World Ltd.
  • Damages to defendant for rent, rates, and agent's fees from 20 October 1998 to assumption by Esat of tenant's interest.