Murphy Company v O'Donovan

JurisdictionIreland
Judgment Date14 December 1939
Date14 December 1939
CourtSupreme Court
(H.C., S.C.),
Murphy & Co
and
O'Donovan

Licensed premises -Tied house - Trade agreement between lessors and lessee - Covenant by lessee to transfer licence to any person nominated by lessors - Covenant against assignment of the premises and transfer of licence without consent - Agreement to deposit licence for safe keeping only - Admission that licence was the property of lessors - Whether provisions in contravention of Licensing Acts -Agreement to deal exclusively with lessors for porter and stout to be sold in premises - Breach of agreement - Whether agreement an unreasonable restraint of trade - Landlord and Tenant Act, 1931, s. 56.

The plaintiff company, who were the owners of certain licensed premises, consented to the transfer to the defendant of the licence attached to the premises and to an assignment of the lessee's interest in the premises, which were held from them under a lease for a term of 81 years, in consideration of the defendant entering into a trading agreement with plaintiffs, similar in terms to the agreement between the former tenant of the premises and the plaintiffs. The lease contained, inter alia, the following covenants by the lessee: 1, to maintain the licence in full force and effect for so long as the lessee should be permitted by the plaintiffs to hold the same; 2, to deal exclusively with the plaintiffs for all porter and stout to be sold on the premises; 3, not to assign the premises nor transfer the licence without the consent in writing of the plaintiffs; 4, on being called upon by the plaintiffs, to transfer the licence to such person as might he nominated by them. The lease also contained an express admission that the licence was the property of the plaintiffs. The trading agreement included similar provisions on the defendant's part in regard to the maintenance of the licence, the exclusive dealing with the plaintiffs and the transfer of the licence, and in addition, provided that the defendant would proceed to obtain a transfer of the licence in his own name and deposit same and every renewal thereof with the plaintiffs for safe keeping only, and, in the event of his failing to apply for such transfer or renewal or to do anything necessary to obtain a transfer to himself or to any person to be nominated by the plaintiffs, the directors of the plaintiff company were authorised to sign his name to all necessary documents for the purpose of maintaining the licence and effectuating the transfer thereof and were...

To continue reading

Request your trial

VLEX uses login cookies to provide you with a better browsing experience. If you click on 'Accept' or continue browsing this site we consider that you accept our cookie policy. ACCEPT