Heublein Inc. & Kentucky Fried Chicken v.Grace

• Jurisdiction: Ireland
• Judge: O'Hanlon J.
• Judgment Date: 13 June 1983
• Neutral Citation: 1983 WJSC-HC 2715
• Court: High Court
• Date: 13 June 1983

1983 WJSC-HC 2715

THE HIGH COURT

No. 2745P/1983

HEUBLEIN INC. & KENTUCKY FRIED CHICKEN V.GRACE

BETWEEN:-

HEUBLEIN INC.

KENTUCKY FRIED CHICKEN (GREAT BRITAIN) LIMITED

KENTUCKY FRIED CHICKEN LIMITED AND

IRISHFRIED CHICKEN LIMITED v PATRICK GRACE

Plaintiffs

- and -

PATRICK GRACE

Defendant

Subject Headings:

INJUNCTION: interlocutory

1 Judgment delivered by O'Hanlon J. the 13th June, 1983.

2 In this case I have come to the conclusion that the Plaintiffs are entitled to the interlocutory relief sought by them, restraining the Defendant pending the hearing of the action from continuing to trade in a manner which involves the use by him of the style and title of "Kentucky Fried Chicken" or "Colonel Sanders" or other material in respect of which the Plaintiffs or some one or more of them are the holders of the relevant trade-mark.

3 The Defendant has for some years past been carrying on such trade in a number of outlets in Dublin and Limerick, pursuant to the terms of an agreement made between him and the Plaintiffs, dated the 14th February, 1975, with which were incorporated the terms and conditions of two other agreements which were to apply in the selection of sites for outlets and in the opening and operation of such outlets, and also in relation to the operation of four existing outlets which were at that time already being operated by the Plaintiffs.

4 The conditions which were incorporated into the 1975 Agreement concerning the operation by the Defendant of his existing trade outlets and any new ones which he might open, included conditions providing for the payment to the Licensor (Kentucky Pried Chicken limited) of a monthly service charge of 4% of gross sales on all items sold on or from the Licensed Premises or £40 whichever should be the greater, such service charge to be paid on or before the 10th day of each month in respect of the previous month. (Clause 2 (x)). It further provided in Clause 2(iv) and Clause 2(xvii) that the Licensee would not use any cooking materials other than those prescribed by the Licensor or sell or permit the selling of chickens prepared by any method or process other than as authorised under the said Licence. Clause 3 then provided (inter alia) that the Agreement should cease and determine if the Licensee should fail to observe and perform all or any of the stipulations and agreements thereinbefore contained and should not comply with the said stipulations and agreements within twenty days of receiving written notice by the Licensor of such failure.

5 On the evidence disclosed in...