Mitchelstown Co-operative Society Ltd v Societe des Produits N‚stles SA

• Jurisdiction: Ireland
• Judgment Date: 01 January 1989
• Date: 01 January 1989
• Court: Supreme Court

(S.C.)

Mitchelstown Co-operative Society Ltd

and

Societe des Produits Néstles SA

- Whether injunction lies - Balance of convenience - Relevance of foreign arbitration clause.

The appellant entered into a licence and trade-mark user agreement with the first named respondent ("the Swiss company") in 1984. At approximately the same time, it entered into a collateral agreement with the second named respondent ("the UK company"), by which it was provided that until the appellant had commenced to manufacture and market certain products according to the specifications of the Swiss company, the UK company would supply it with its own manufactured goods of a similar kind. The agreement further provided that the appellant should have the sole right to distribute the said goods under the UK company's trademark in Ireland. The Swiss company subsequently purported to repudiate its contract with the appellant, on the ground that four years from the date of the contract, the appellant had not commenced the manufacture of its own products. At this time, the third-named respondent ("the Irish company"), was appointed by the other two respondents to distribute the products of the UK company in Ireland. The appellant alleged this to be a breach of the collateral agreement, and claimed that the Irish company had conspired with the other two respondents to procure a breach of their contracts with the appellant. The respondents denied the existence of any collateral contract. The appellant obtained leave from the High Court to issue and serve proceedings upon the Swiss Company. This order was subsequently set aside by the High Court upon the application of the respondents, which application was based on a clause in the contract which provided that any disagreement should be referred to a Swiss arbitrator, and that the High Court had no jurisdiction to grant leave to the...