Dunnes Stores UnLtd Company & Anor v Dafora UnLtd & Ors (Approved) [2024] IECA 37 (16 February 2024)

Dunnes Stores UnLtd Company & Anor v Dafora UnLtd & Ors (Approved) [2024] IECA 37 (16 February 2024)

The term 'groceries' in the restrictive covenant extends beyond food and food products to include non-durable consumable household items purchased frequently, such as healthcare products, household and cleaning products, pet care, toiletries, detergents, and similar items. This interpretation aligns with industry understanding and business common sense, and is not void for ambiguity. The restrictive covenant is enforceable against the appellants, prohibiting the sale of these items in Unit 4.

Citation
[2024] IECA 37
Parties
Plaintiff/respondent: Dunnes Stores Unlimited Company; Plaintiff/respondent: Camgill Property a Sé Limited; Defendant/appellant: Dafora Unlimited Company; Defendant/appellant: Corajio Unlimited Company T/A as Mr. Price Branded Bargains
Jurisdiction
Ireland
Judgment Date
16 February 2024
Procedural Posture
Appeal / Judgment
Outcome
appeal dismissed
Legal Topics
Restrictive Covenants, Lease Interpretation, Retail Competition
Property Law Contract Law Restrictive Covenants Lease Interpretation Retail Competition

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Parties

Dunnes Stores Unlimited Company

Plaintiff/respondent

Camgill Property a Sé Limited

Plaintiff/respondent

Dafora Unlimited Company

Defendant/appellant

Corajio Unlimited Company T/A as Mr. Price Branded Bargains

Defendant/appellant

Procedural Posture

Appeal / Judgment

Legal Issues

  1. 1 Interpretation of 'groceries' in restrictive covenant
  2. 2 Scope of prohibited items under lease
  3. 3 Ambiguity and enforceability of restrictive covenants

Ratio Decidendi

The term 'groceries' in the restrictive covenant extends beyond food and food products to include non-durable consumable household items purchased frequently, such as healthcare products, household and cleaning products, pet care, toiletries, detergents, and similar items. This interpretation aligns with industry understanding and business common sense, and is not void for ambiguity. The restrictive covenant is enforceable against the appellants, prohibiting the sale of these items in Unit 4.

Court Disposition

appeal dismissed

Orders

  • Second Named Defendant and its agents prohibited from selling food, food products, or groceries in Unit 4 as defined in the lease and judgment.
  • Declaration that 'groceries' includes non-durable consumable household items purchased frequently, including healthcare products, household and cleaning products, pet care, toiletries, detergents, and similar items.