The Gazette 1996

GAZETTE

AUGUST/SEPTEMBER 1996

the H i g h C o u rt i mp l i c i t ly testing the

validity of a restraint of t r a de by

r e f e r e n ce to the criteria d e v e l o p ed by

the E u r o p e an C o u rt r a t h er than by a

m o r e traditional c o n s i d e r a t i on of the

c o m m o n l aw p r i n c i p l e s. It is a r g u a b le

that M u r p h y J. w a s s u g g e s t i ng that the

test g o v e r n i ng the validity of restrictive

c o v e n a n ts is the s a m e u n d er E u r o p e an

law, the C o m p e t i t i on A ct a n d the

c o m m o n l aw as, h a v i ng a c c e p t ed that

" t he a p p l i c a b le legal p r o v i s i o ns w e re

c o r r e c t ly stated in

Remia"~

he w e nt on

to s e v er t he r e l e v a nt c o v e n a nt "in

a c c o r d a n ce w i th the p r i n c i p l es well

e s t a b l i s h ed at c o m m o n l aw a nd

r e c o g n i s ed in the A ct of 1991""

H o w e v e r, s i n c e, to d a t e, the criteria of

r e a s o n a b le in t he p u b l ic interest h as not

f o r m e d a part of E u r o p e an l aw a nd is

not r e p r e s e n t ed in the C o m p e t i t i on Act,

the c o m m o n l aw m u st be i n t e r p r e t ed as

p r o v i d i ng that a d d i t i o n al test. A s that

c o m m o n l aw test of r e a s o n a b le in the

p u b l ic interest w a s not directly r e l e v a nt

to this c a s e it c a n b e a s s u m ed that

M u r p h y J. did not i n t e nd to reject this

test as n ot b e i ng part of the Irish l aw on

r e s t r a i n ts of trade.

5. Conclusion

It is s u b m i t t ed that t he p r i n c i p le

c o n s i d e r a t i o ns in a d j u d i c a t i ng u p on the

v a l i d i ty of a n y restrictive c o v e n a nt are

its c omp a t i b i l i ty w i th S e c t i on 4 a nd

w i th the g e n e r al test d e v e l o p ed by the

E u r o p e an C o u r t, w h i c h a s ks w h e t h er the

restraint is n e c e s s a ry f o r l e g i t i ma te

p r o t e c t i on of an u n d e r t a k i ng a nd t he

d e v e l o p m e nt of c o m p e t i t i on w i t h in the

r e l e v a nt m a r k et

and

is r e a s o n a b le in

t e r ms of t i me, s p a ce a n d s u b j e ct ma t t e r.

In a d d i t i on t he criteria of p u b l ic interest,

d e v e l o p ed by t he Irish C o u r t s, m u st

be a p p l i e d.

It w o u l d s e e m that the E u r o p e an test

b e a rs a m a r k e d r e s e m b l a n ce to m a n y

e l e m e n ts of t he c o m m o n l aw tests.

W h e t h e r o r not t he C o m p e t i t i on A ct

c a n b e i n t e r p r e t ed i n d e p e n d e n t ly of

E u r o p e an l a w, t he i n t e r v e n t i on of the

A c t i n to t he a r ea of restrictive

c o v e n a n ts s h o u ld not b e v i e w ed as a

r a d i c al d e p a r t u re f r o m t he c o m m o n

l a w d o c t r i n e, b ut r a t h er as c o m p a t i b le

w i th a n d c o m p l i m e n t a ry to a

c o n c e pt that h a d f o r m e d a vital part

of c o mm e r c i al life s i n ce the

M i d d l e A g e s.

Footnotes

1. See generally Bergeron J.H. 'Setting the Cat

among the Pigeons: The Competition Act and

Restraint of Trade in Employment Contracts'

Vol. 9 (1990-1993) JISLL 57.

2. (1621) Nov. 98;

sub nom. Jollie -v- Broads 2

Rol. Rep. 201.

3. Treitel G.J. 'The Law of Contract' (8th ed„

1991, London, Sweet & Maxwell) at 422.

Esso Petroleum Co. Ltd -v- Harpers Garage

(Southport) Ltd [1968] AC 269.

5. Masterfoods Ltd t/a Mars Ireland -v- HB Ice

Cream Ltd and HB Ice Cream -v-

Masterfoods Ltd t/a/Mars Ireland

High Court,

Keane J. 28 May 1992.

Kerry Co-Operative Creameries Ltd -v- An

Bord Bainne Co-Operative Ltd

[1991 ILRM

851.

7. Ungoed-Thomas J. in

Texaco Ltd

-v-

Mulberry Filling Station Ltd

[ 1972) 1 All ER

513.

8. [1979] ILRM 79.

9. per O'Higgins C.J. at 92.

10. O'Hare P.

loc. cit.

at 81.

. Peter Mark/Majella Stapleton,

Decision No.

13 of 13 February 1993.

12. Apex Fire Protection Ltd/Noel Murtagh,

Decision No. 20 of 10 June 1993.

13. Notice in Respect of Shopping Centre Leases,

dated 2 September 1993.

14. Competition Authority Decision No. 283 of 4

February 1994.

15. Cooke J.D. 'EC Caselaw as a Guide to

Interpretation and Application of the

Legislation' in "The New Competition

Legislation' ed. Findlater J., ICEL (1991) 45

at 45.

16. Cooke J.D. 'The Competition Act: One Year

On-Resolving the EC/Irish Law Dichotomy'

in 'Key Aspects of Irish Competition Law

and Practice' ed. Schuster A., ICEL (1994) 84

at 85.

17.

Reuter/BASE

OJ [1976] L254/40, [1976] 2

CMLR D44.

18. Case 42/84 [ 1985] ECR 2545.

19. at 2571.

20.

loc. cit.

at 64.

21. [1987] ILRM 702.

22. at 704.

23. Decision No. 20, 10 June 1993.

24. Decision No. 10 of 23 October 1992.

25. Cooke J.D.

loc. cit.

at footnote 20 at 83.

26. [1995] I I.R. 89.

27. at 97.

28. at 95.

29. at 97.

30. I am grateful to Eoin O'Dell and Cathrina

Keville for their helpful comments on earlier

drafts of this article. Any errors or opinions

expressed are my own.

•

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President's Prize

A n d y S m y t h ' s P r e s i d e n t 's P r i ze w a s

h e ld at C i ty W e s t G o lf C l u b on the

29 J u l y, 1996. O n e

h u n d r ed a nd f o u r

^ S.

c o l l e a g u es

p a r t i c i p a t ed a nd the

<j|

winner was

Alan

*y§

Mitchell

from

L o n g f o rd w i th a f a n t a s t i c ^ ^ "

^ ^

s c o re of 4 3 p o i n t s.

T h e shot of the d a y w a s o b v i o u s ly

Brian

Rigney's

hole in one at the 17th but in

the interest of r o ad s a f e ty h e r e f u s ed to

b u y a d r i nk f o r a n y o n e.

Result:

W i n n e r:

A l an M i t c h e l l, L o n g f o r d,

H / C 8 - 4 3 p o i n t s.

S e c o n d:

F r a nk W a r d , D u b l i n, H / C

2 2 - 4 0 points.

T h i r d:

P a d dy O ' D o h e r t y,

M o n a g h a n, H / C 1 8 - 4 0

p o i n t s.

The Ryan Cup

W i n n e r:

H e n ry L a p p i n, H / C 1 5 - 3 7

p o i n t s.

R u n n e r - u p: C y r il C o y l e, H / C 1 4 - 3 7

p o i n t s.

Handicap 12 and Under

W i n n e r:

N o el H u g h e s, H / C 1 0 - 3 9

p o i n t s.

R u n n e r - u p: R o g er B a l l a g h, H / C 6 - 3 8

p o i n t s.

Veterans Cup

j W i n n e r:

D e n is M c D o w e l l, H / C 15 -

3 6 p o i n t s.

Front Nine

W i n n e r:

D i s t r i ct J u d g e Bill H a r n e t t,

H / C 7 - 19 p o i n t s.

Back Nine

W i n n e r:

B r i an R i g n e y, H / C 1 4 - 2 1

p o i n t s.

At the AGM the following officers

were appointed for the year 1997:

C a p t a i n:

Bill J o l l ey

S e c r e t a r y:

H e n ry L a p p in

T r e a s u r e r:

T h o m a s D a l t on

Bill Jolley,

Hon. Secretary

•

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