JRM Sports Ltd v Football Association of Ireland

• Jurisdiction: Ireland
• Judge: MR. JUSTICE CLARKE
• Judgment Date: 31 January 2007
• Neutral Citation: [2007] IEHC 67
• Judgment citation (vLex): [2007] 1 JIC 3104
• Court: High Court
• Date: 31 January 2007

[2007] IEHC 67

THE HIGH COURT

DUBLIN

Case No. 359P/2007

JRM Sports Ltd v Football Association of Ireland

JRM SPORTS LIMITED TRADING AS LIMERICK FOOTBALL CLUB

PLAINTIFF

and

THE FOOTBALL ASSOCIATION OF IRELAND CUMANN PÉILE na hÉIREANN

DEFENDANT

O'KEEFFE v BORD PLEANALA 1993 1 IR 63 1992 ILRM 237 1991 5 1137

MCK v C (D) & ORS UNREP CLARKE 26.5.2006 IEHC 185

BAMBRICK v COBLEY 2006 1ILRM 81 2005 3 573 2005 IEHC 43

INJUNCTION

Interlocutory injunction

Contract - Licence refused due to failure to comply with rules - Appeal to appeal board - Failure to provide report on decision as required under rules - Whether fair case made out - Whether damages adequate remedy - Whether balance of convenience favoured granting injunction - Interlocutory injunction refused (2007/359P - Clarke J - 31/1/2007) [2007] IEHC 67JRM Sports Ltd v Football Association of Ireland

The plaintiff sought an order to permit the plaintiff to play in the League of Ireland Football season in 2007. The plaintiff sought an interlocutory injunction. The dispute arose in relation to the attempts to prevent the defendant negotiating or entering a contract with a third party to grant a licence and as to whether there had been ample material before the Licensing Committee in relation to the appropriateness of licensing Limerick FC.

Held by Clarke J. that the Court had not been satisfied that Limerick FC had made out any case that would entitle them to success. The injunction sought would be refused and the FAI would be free to deal with matters in accordance with the decisions of its licensing committee and appeal board.

Reporter: E.F.

1 JUDGMENT DELIVERED BY MR. JUSTICE CLARKE ON WEDNESDAY, 31 JANUARY 2007

2 MR. JUSTICE CLARKE: In these proceedings the Plaintiff company, ("Limerick FC"), seeks a number of orders which, in substance, are designed to ensure that Limerick FC is permitted to play in the League of Ireland for the forthcoming season in 2007, or alternatively to prevent any other team playing in their stead, pending the outcome of these proceedings. It will be necessary to return to the type of orders sought in the course of this judgment in that the form of the orders sought is of some relevance to the issues which I have to consider.

3 The application that is presently before the Court seeks an interlocutory injunction designed to secure those orders on a temporary basis pending a trial of the case. Therefore, if successful, the orders sought would require either that Limerick FC be permitted to play in the League of Ireland for the forthcoming season (which is due to start in March) or alternatively that no other team be allowed take their place in that season, it being the case that it would be impractical to alter the composition of the league in the course of a season.

4 The procedural history of the case commenced on 16 January of this year when Limerick FC made an application to this Court, Peart J, for an interim order. That order was given until what was then the following Monday, 22 January 2007. The order prevented the Defendant, ("the FAI") from:

5 1. Negotiating or attempting to negotiate or contracting or attempting to enter into any contract and/or agreement with any third party for the granting or issuing of a licence, whether permanent or temporary, or otherwise to carry on and carry out the functions of a Football Association of Ireland member club in place or instead of Limerick Football Club.

6 2. Substituting or replacing or attempting to substitute or replace the Plaintiff herein trading under the style and title of Limerick Football Club as the Football Association of Ireland club for the City and County of Limerick pending the outcome of the proceedings.

7 3. Convening and holding a signing participation agreement in the absence of representatives of Limerick Football Club signing any new or further club or other identity in lieu of the Plaintiff.

8 In substance it will be seen that the order sought on behalf of Limerick FC, and given by the Court on 16 January, prevented the arrangements then contemplated for setting up the league for the current season, by preventing the signing of the participation agreement going ahead and also prevented the FAI from exploring whether any other club might be admitted into the League of Ireland for this season. It will be necessary to return to the circumstances in which that order was given in due course because one of the complaints made by the FAI is that the Court was seriously misled on the occasion when that order was sought and given.

9 The background to the circumstances that gives rise to the dispute between Limerick FC and the FAI stems in part, from the historical way in which football was organised in Ireland. Historically the FAI did not organise the senior divisions of the league of Ireland which were operated under the auspices of a separate body; however, in recent years, in substance, the FAI have taken over the management of the league and it is clear from all of the documents put before the Court that as part of that process the FAI has embarked upon a procedure of attempting to introduce a higher level of professionalism into the administration of football in Ireland and has made clear that it intends imposing tightened processes for that administration. In that context it is important to note that all of the clubs playing in the League of Ireland signed up to new arrangements in the middle of last year and entered into what are, in substance, contracts with the FAI to comply with new and tightened rules, regulations and procedures.

10 Before going on to the specific facts of this case, I should also note that having had the opportunity to review relevant portions of those rules, that is to say the rules concerning the licensing of clubs which is at the heart of these proceedings, it seems to me that it can be fairly said that they are not couched in legalese, jargon or technical terms and they are written in a way that ought to be capable of easy understanding by anyone who holds themselves out as having a position of any significance in the administration of football or football clubs in Ireland.

11 It is now necessary to turn to the facts which give rise to the dispute between the parties. It is clear that amongst the measures adopted by the FAI for the purposes of improving professionalism and tightening up the processes of the administration of football in Ireland included a tighter licensing régime to be put in place for the season 2007. It is clear that that fact was brought to the attention of all clubs and there is ample correspondence passing between the FAI and those in charge of Limerick FC from which it ought to have been very clear to those in charge of Limerick FC that those processes were being tightened up.

12 Furthermore it ought to have been clear that as the licensing application by Limerick FC (for the licence which would be necessary for them to play in the League of Ireland in the 2007 season) was being considered there were significant problems with the application, which at least gave rise to the risk that the licence sought and which was, as I indicated necessary for Limerick FC to be able to play in the League of Ireland, might well be refused.

13 I should note at this stage that it is commented in fairly strong terms in a number of the affidavits filed by the officers of Limerick FC that they were shocked at the refusal of the licence. I have to say that I find it very difficult indeed to understand how anyone who had read the correspondence received from the FAI could have been so shocked unless they had placed their heads very firmly in the sand and had refused to read or understand what was written in clear terms.

14 In any event, the licence was refused by the appropriate body, that is to say the licensing committee of the FAI, and in those circumstances Limerick FC had a right of an appeal to the appeal body. The rules required that Limerick FC be informed of that right of appeal and that they were so informed.

15 An appeal was put in to the appeal body. Again, it seems to me that the rules of the FAI applicable to the appeal body are perfectly clear and are not couched in, as I have indicated, legalese or jargon which would lead any reasonable person reading them to have any doubt about what they mean. It is clear beyond any doubt, and is stated on a number of occasions in those rules, that the sole purpose of the review to be carried out by the appeal body is to look at the process that was carried out by the licensing committee and decide was that fair and appropriate, and also to consider whether the overall result was a fair or reasonable result. Therefore, in substance there were two types of appeals that could be brought, or indeed a combination of both: Firstly, it could be suggested that there was some unfairness in the way in which the licensing body went about its business and clearly if the appeal body was persuaded that that was so it had appropriate powers to remedy that wrong. Secondly, it might be suggested that while the process was fair and the conclusions on what actually occurred by the licensing committee were reasonable, nonetheless the licensing committee had taken a too severe review of whatever failings might have been identified.

16 Those parameters were set out in clear terms in the rules and it is again difficult to understand how anyone who had read the rules would not have been immediately aware of the sort of appeal that could be brought. In those circumstances it is again very difficult to understand the repeated references in the affidavits filed by the officers of Limerick FC to a complaint to the effect that they thought that they would be able to produce further evidence to the appeal body. If they had...