M.A. Doyle/ J. Moffit [1994] IECA 333 (10th June, 1994)

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

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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

  1. 1 Whether non-compete clauses in the sale and partnership agreements offend against section 4(1) of the Competition Act 1991
  2. 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.