M.A. Doyle/ J. Moffit [1994] IECA 333 (10th June, 1994)
The non-compete clauses in the sale and partnership agreements exceed what is necessary to secure the transfer of goodwill, particularly in their duration, and thus offend against section 4(1) of the Competition Act 1991. They are not indispensable to the objectives of the agreement and do not qualify for a licence under section 4(2).
- Citation
- [1994] IECA 333
- Parties
- Vendor/applicant: Martin Andrew Doyle; Purchaser/respondent: Joseph Moffitt
- Jurisdiction
- Ireland
- Procedural Posture
- Competition Authority Notification / Authority Decision on Certificate/licence Application
- Outcome
- Refusal of certificate or licence
- Legal Topics
- Non Compete Clauses, Sale of Business, Partnership Agreements, Section 4 Competition Act 1991
Case Brief
Summary, issues, holding and outcome
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Parties
Martin Andrew Doyle
Vendor/applicant
Joseph Moffitt
Purchaser/respondent
Procedural Posture
Competition Authority Notification / Authority Decision on Certificate/licence Application
Legal Issues
- 1 Whether non-compete clauses in the sale and partnership agreements offend against section 4(1) of the Competition Act 1991
- 2 Whether the agreements qualify for a certificate or licence under section 4(2)
Ratio Decidendi
The non-compete clauses in the sale and partnership agreements exceed what is necessary to secure the transfer of goodwill, particularly in their duration, and thus offend against section 4(1) of the Competition Act 1991. They are not indispensable to the objectives of the agreement and do not qualify for a licence under section 4(2).
Court Disposition
Refusal of certificate or licence
Orders
- Certificate or licence under section 4 of the Competition Act 1991 refused for notification no. CA/1133/92.
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