Viva/McDonald [1993] IECA 34 (24th September, 1993)

Viva/McDonald [1993] IECA 34 (24th September, 1993)

The amended non-compete clauses, reduced to three years, are justified and do not offend Section 4(1) as they are necessary to secure the transfer of goodwill to Viva, considering the infrequent nature of customer transactions and the risk of McDonald Travel recapturing customers.

Citation
[1993] IECA 34
Parties
Buyer: Viva Travel Dun Laoghaire Limited; Seller: Grainne McDonald Travel Limited; Director: John O'Donoghoe; Guarantor: Mary O'Donoghoe; Director: William Murphy
Jurisdiction
Ireland
Procedural Posture
Competition Notification / Final Decision
Outcome
certificate issued; agreement does not offend Section 4(1)
Legal Topics
Non Compete Clauses, Sale of Business, Market Definition
Competition Law Non Compete Clauses Sale of Business Market Definition

Case Brief

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Parties

Viva Travel Dun Laoghaire Limited

Buyer

Grainne McDonald Travel Limited

Seller

John O'Donoghoe

Director

Mary O'Donoghoe

Guarantor

William Murphy

Director

Procedural Posture

Competition Notification / Final Decision

Legal Issues

  1. 1 Whether the non-compete clauses in the sale agreement offend Section 4(1) of the Competition Act, 1991

Ratio Decidendi

The amended non-compete clauses, reduced to three years, are justified and do not offend Section 4(1) as they are necessary to secure the transfer of goodwill to Viva, considering the infrequent nature of customer transactions and the risk of McDonald Travel recapturing customers.

Court Disposition

certificate issued; agreement does not offend Section 4(1)

Orders

  • Certificate issued stating the agreement as amended does not offend Section 4(1) of the Competition Act, 1991