Collins/Butler/O'Brien [1995] IECA 454 (18th December, 1995)

Collins/Butler/O'Brien [1995] IECA 454 (18th December, 1995)

The restrictive covenants in clause 21.1 of the partnership agreement are limited to 18 months and a ten-mile radius, and are necessary to protect the goodwill of the business; therefore, they do not offend against Section 4(1) of the Competition Act, 1991.

Citation
[1995] IECA 454
Parties
Partner/applicant: Richard A. Collins; Partner/applicant: Thomas M. Butler; Partner/applicant: John Noel O'Brien
Jurisdiction
Ireland
Procedural Posture
Competition Authority Notification/decision / Decision on Certificate Under Section 4(4) of the Competition Act, 1991
Outcome
Certificate granted; notified agreement does not offend against Section 4(1) of the Competition Act, 1991.
Legal Topics
Partnership Agreements, Restrictive Covenants, Goodwill Protection, Section 4 Competition Act 1991
Competition Law Partnership Agreements Restrictive Covenants Goodwill Protection Section 4 Competition Act 1991

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Parties

Richard A. Collins

Partner/applicant

Thomas M. Butler

Partner/applicant

John Noel O'Brien

Partner/applicant

Procedural Posture

Competition Authority Notification/decision / Decision on Certificate Under Section 4(4) of the Competition Act, 1991

Legal Issues

  1. 1 Whether the partnership agreement contains clauses that prevent, restrict, or distort competition in breach of Section 4(1) of the Competition Act, 1991

Ratio Decidendi

The restrictive covenants in clause 21.1 of the partnership agreement are limited to 18 months and a ten-mile radius, and are necessary to protect the goodwill of the business; therefore, they do not offend against Section 4(1) of the Competition Act, 1991.

Court Disposition

Certificate granted; notified agreement does not offend against Section 4(1) of the Competition Act, 1991.

Orders

  • Certificate issued stating the partnership agreement does not offend against Section 4(1) of the Competition Act, 1991.