Thomas Thompson Holdings Ltd & anor -v- Musgrave Group PLC [2016] IEHC 28 (22 January 2016)

Thomas Thompson Holdings Ltd & anor -v- Musgrave Group PLC [2016] IEHC 28 (22 January 2016)

The plaintiffs failed to demonstrate a strong case likely to succeed at trial for a mandatory injunction compelling the defendants to continue operating a loss-making business. The order sought was mandatory, not merely prohibitory, and damages were found to be an adequate remedy. The plaintiffs' inability to...

Source-derived case information.

Citation
[2016] IEHC 28
Parties
Plaintiff: Thomas Thompson Holdings Limited; Plaintiff: Montaya Developments Limited; Plaintiff: Carlow Centre Management Limited; Defendant: Musgrave Group PLC; Defendant: Musgrave Retail Partners Ireland Limited; Defendant: Musgrave Operating Partners Ireland Limited
Jurisdiction
Ireland
Judgment Date
22 January 2016
Procedural Posture
Interlocutory Injunction Application / Decision on Interlocutory Injunction
Outcome
Application for interlocutory injunction refused
Legal Topics
Interlocutory Injunctions, Specific Performance, Keep Open Covenants, Remedies for Breach of Contract
Contract Law Equity Interlocutory Injunctions Specific Performance Keep Open Covenants Remedies for Breach of Contract

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Summary, issues, holding and outcome

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Parties

Thomas Thompson Holdings Limited

Plaintiff

Montaya Developments Limited

Plaintiff

Carlow Centre Management Limited

Plaintiff

Musgrave Group PLC

Defendant

Musgrave Retail Partners Ireland Limited

Defendant

Musgrave Operating Partners Ireland Limited

Defendant

Procedural Posture

Interlocutory Injunction Application / Decision on Interlocutory Injunction

Legal Issues

  1. 1 Whether an interlocutory injunction should be granted to restrain closure of a business in breach of a 'keep open' covenant
  2. 2 Whether the plaintiffs have a strong case likely to succeed at trial for a mandatory injunction compelling operation of a loss-making business
  3. 3 Whether damages are an adequate remedy for breach of a 'keep open' covenant

Ratio Decidendi

The plaintiffs failed to demonstrate a strong case likely to succeed at trial for a mandatory injunction compelling the defendants to continue operating a loss-making business. The order sought was mandatory, not merely prohibitory, and damages were found to be an adequate remedy. The plaintiffs' inability to provide a meaningful undertaking as to damages was also a significant bar to relief.

Court Disposition

Application for interlocutory injunction refused

Orders

  • Injunction restraining closure of the store refused