Irish Shell Ltd v Elm Motors Ltd

JurisdictionIreland
Judgment Date01 January 1984
Date01 January 1984
Docket Number[1982 No. 3465P]
CourtSupreme Court
(H.C., S.C.)
Irish Shell Ltd
and
Elm Motors Ltd

Balance of convenience - Contract - Terms - Enforcement - Restraint of trade - Covenant in lease -Covenant in positive form - Solus agreement with oil company - Lessor's remedy for breach of covenant - Mandatory and prohibitory injunctions - Interlocutory relief.

The defendants carried on a garage and petrol service business and the plaintiffs, an oil company, sold petroleum products. In the year 1969 the defendants bought a six-acre plot beside a public road and adjoining an acre plot which belonged to the plaintiffs. The plaintiffs had obtained planning permission for the development of their plot as a petrol and service station. The defendants' application for a similar permission for their plot was refused; they appealed against the refusal but withdrew the appeal after they had obtained the plaintiffs' agreement to grant the defendants a lease of the plaintiffs' plot. Subsequently, the defendants applied for and, on the 24 July, 1970, obtained planning permission to develop the combined plots as a petrol and service station. By a lease dated the 30 October, 1973, the plaintiffs demised their plot to the defendants for a term of 42 years. The lease contained covenants by the defendants to use the demised plot and their plot only for the purpose of a motor garage, sales room and petrol and service station; to buy from the plaintiffs exclusively all petroleum products required by the defendants for sale or use on the combined plots; to exhibit on the combined plots the plaintiffs' signs and advertising matter and to decorate the combined plots in the plaintiff's standard colours. The defendants built a service station and installed several petrol pumps mainly, it would appear, on their own plot. On the 1 March, 1982, the defendants ceased all trading with the plaintiffs and began to buy the supplies for their business from a new supplier; the defendants removed all the plaintiffs' insignia and advertising signs from the combined plots. The plaintiffs claimed in the High Court mandatory and prohibitory injunctions compelling the defendants to comply with their covenants in the lease. By notice of motion dated the 23 March, 1982, the plaintiffs applied for interlocutory relief, in the terms of the endorsement of claim on their summons, pending the hearing of their action. Held by Costello J., in granting the interlocutory relief sought by the plaintiffs, 1, that where a lessee first acquires...

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17 cases
  • Bayzana Ltd v Galligan
    • Ireland
    • Supreme Court
    • 1 January 1987
    ...ETHICON LTD 1975 AC 396 CAMPUS OIL LTD V MIN INDUSTRY & ENERGY 1983 IR 82, 1984 ILRM 45 ELLIS V WRIGHT 1976 IR 8 IRISH SHELL V ELM MOTORS 1984 IR 200, 1983 ILRM 63, 1984 ILRM 595 PANTRY FRANCHISE (IRL) LTD V MACKEN UNREP 25.6.79 TRADE DISPUTES ACT 1906 S2 1 JUDGMENT delivered on the 19th ......
  • McCoy & South Dublin County Council v Shillelagh Quarries Ltd & Murphy
    • Ireland
    • Court of Appeal (Ireland)
    • 19 February 2015
    ...should not endeavour to resolve complex factual or legal issues by interlocutory order: see, e.g., Irish Shell Ltd. v. Elm Motors Ltd. [1984] I.R. 200, 224, per McCarthy J. Yet if the courts were to hold that a protective costs order could not be made until the outcome of the proceedings w......
  • SHELBOURNE HOTEL Ltd v TORRIAM HOTEL OPERATING Company Ltd
    • Ireland
    • High Court
    • 18 December 2008
    ...v Shandham [1971] Ch 340, Locabail International Finance Limited v Agroexport [1986] 1 All ER 901, Irish Shell Limited v Elm Motors [1984] 1 IR 200, Boyhan v Tribunal of Inquiry into the Beef Industry [1993] 1 IR 210, Ling ham v Health Service Executive [2005] IESC 89, [2006] 17 ELR 137 an......
  • Byrne v Dublin City Council
    • Ireland
    • High Court
    • 18 March 2009
    ... ... H UNREP KEANE 20.12.1979 1981/4/591 DUBLIN CITY COUNCIL v FENNELL 2005 IR 604 IRISH TRUST BANK v CENTRAL BANK OF IRELAND 1976-77 ILRM 50 CAMPUS OIL v MIN FOR INDUSTRY (NO.2) ... In Irish Shell v. Elm Motors [1984] I.R. 200 , McCarthy J. cited with approval the well-known observation of Lord ... ...
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2 books & journal articles
  • Ireland: The Celtic Tiger Bites — The Attack on the Proceeds of Crime
    • United Kingdom
    • Emerald Journal of Money Laundering Control No. 4-3, January 2001
    • 1 January 2001
    ...court's own motion. (98) See generally Campus Oil Ltd v Minister for Industry and Energy [1983] IR 323; Irish Shell Ltd v Elm Motors Ltd [1984] ILRM 595. (99) Section 16 POC Act. (100) Section 5(l)(b) CAB Act. (101) The Disclosure of Certain Information for Taxation and Other Purposes Act 1......
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    • Ireland
    • Irish Judicial Studies Journal No. 2-9, July 2009
    • 1 July 2009
    ...him. In the course of his judgment, Fennelly J. referred to _____________________________________________________ 13[1971] Ch. 340. 14 [1984] I.R. 200. 15 [2006] 17 E.L.R. 137. 2009] Employment Injunctions 11 the obligation on the employer and on the employee to work faithfully, and respect......

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