Notification No: CA/271/92E ‑ Richfield Investments Ltd/ William and Anne Dolan

Decision No:  251

Introduction

1.	Notification was made by William and Anne Dolan on 30 September, l992 with a request for a certificate under Section 4(4) of the Competition Act, l99l or, in the event of a refusal by the Competition Authority to issue a certificate, a licence under Section 4(2) in respect of a lease between Richfield Investments Ltd and William and Anne Dolan.

The Facts

(a)	Subject of the notification

2.	The notification concerns the lease of unit 21 at the Thomond Shopping Centre, Roxboro, Limerick between Richfield Investments Ltd as landlord and William and Anne Dolan as tenant.

(b)	The parties involved

3.	Richfield Investments Ltd is the owner and landlord of the Thomond Shopping Centre,Roxboro, Limerick.  William and Anne Dolan under the name Dolan's Pharmacy trade as a retail pharmacist at the centre.

(c)	The notified arrangements

4.	The notified lease was made on 10 August 1976 for a period of 34 years from I October 1974. The restricted user clauses in the lease are as follows:

(a)	Under clause C(12) the tenant covenants "To use the demised premises only for the carrying on of the trade, provision of the services or sale by retail of the goods set out in the Fourth Schedule hereto and not without the Landlord's consent in writing to use or permit to suffer the same or any part thereof to be used for the carrying on of any other trade, provision of any other service or the sale of any other goods or for any other purpose whatever..."

(b)	Under clause c (14) the tenant covenants "(a)  Not to assign, sub‑let, part with or share possession or occupation of the demised premises or any part thereof or suffer any person to occupy or use the demised premises or any part thereof as Licensee without the consent in writing of the Landlord being first obtained."

(c)	Under clause c(60) the Landlord covenants " ....not to demise any other portion of the Roxboro Shopping Centre for use as a pharmacy (other than unit 21 to the lessee)."

(d)	In the Fourth Schedule, the Limitation of User Clause states "The premises shall be used as a Chemist shop only."
In addition, there are a number of other standard restrictive covenants and obligations in the lease.

Assessment ‑ The Applicability of Section 4(1)

5.	The Authority considers that Richfield Investments Ltd and William and Anne Dolan are undertakings and that the notified lease is an agreement between undertakings.  The agreement has effect within the State.

6.	The Authority considers that the notified agreement, and its restricted and exclusive user clauses and the other standard restrictive clauses and obligations, does not have the object or effect of preventing, restricting or distorting competition in trade in any goods or services in the State or in any part of the State, for the reasons given in the Notice of the Authority of 2 September, l993 in respect of shopping centre leases (Iris Oifigiuil of 10 September, l993, pp. 665‑667).  The Authority therefore considers that the notified agreement between Richfield Investments Ltd and William and Anne Dolan does not offend against Section 4(1) of the Competition Act, l99l.

The Certificate

7.	The Competition Authority has issued the following certificate:

The Competition Authority certifies that in its opinion, on the basis of the facts in its possession, the agreement between Richfield Investments Ltd and William and Anne Dolan in relation to the lease of the premises at the Thomond Centre, Roxboro, Limerick, notified under Section 7 on 30 September, l992 (notification no. CA/271/92E), does not offend against Section 4(1) of the Competition Act, l99l.

For the Competition Authority

Des Wall
Member
15 December 1993