Vavasour v. O'Reilly & Ors [2005] IEHC 16 (28 January 2005)

Vavasour v. O'Reilly & Ors [2005] IEHC 16 (28 January 2005)

The franchise agreement was between the plaintiff and Mr. O'Reilly personally, entitling the plaintiff to 50% of net profits. There was no implied term requiring the plaintiff's employment to continue for the duration of the franchise. The plaintiff was contractually entitled to a bonus for 1992. Damages for breach of the franchise agreement were limited by the statute of limitations, excluding claims for the period 15 November 1994 to 22 June 1998.

Citation
[2005] IEHC 16
Parties
Plaintiff: William Pearse Vavasour; First Defendant: Patrick Michael O'Reilly; Second Defendant: Windsor Motors Limited; Third Defendant: Windsor Rent a Car Limited
Jurisdiction
Ireland
Judgment Date
28 January 2005
Procedural Posture
High Court Civil Action / Final Judgment After Trial
Outcome
Partially in favour of the plaintiff
Legal Topics
Franchise Agreements, Implied Terms, Breach of Contract, Damages, Statute of Limitations, Bonus Entitlements
Contract Law Employment Law Franchise Agreements Implied Terms Breach of Contract Damages Statute of Limitations Bonus Entitlements

Case Brief

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Parties

William Pearse Vavasour

Plaintiff

Patrick Michael O'Reilly

First Defendant

Windsor Motors Limited

Second Defendant

Windsor Rent a Car Limited

Third Defendant

Procedural Posture

High Court Civil Action / Final Judgment After Trial

Legal Issues

  1. 1 Whether the plaintiff was entitled to 50% of the net profits from the franchise agreement
  2. 2 Whether there was an implied term that the plaintiff's employment would continue for the duration of the franchise agreement
  3. 3 Whether the plaintiff was entitled to a bonus payment for 1992

Ratio Decidendi

The franchise agreement was between the plaintiff and Mr. O'Reilly personally, entitling the plaintiff to 50% of net profits. There was no implied term requiring the plaintiff's employment to continue for the duration of the franchise. The plaintiff was contractually entitled to a bonus for 1992. Damages for breach of the franchise agreement were limited by the statute of limitations, excluding claims for the period 15 November 1994 to 22 June 1998.

Court Disposition

Partially in favour of the plaintiff

Orders

  • Plaintiff awarded damages for 50% of net profits from the franchise agreement, excluding the statute-barred period (15 November 1994 to 22 June 1998), with post-fourth year profits discounted to 60% for loss of opportunity.
  • Plaintiff awarded IR£10,000 (less tax and deductions) as bonus for 1992.