Dispute involving Power City is settled

A DISPUTE between a company which distributed electrical goods and Power City Ltd, a large retailer, has been settled, the High Court was told yesterday.

Magna Distribution Ltd, now in receivership and previously of Carriglea Industrial Estate, Naas Road, Dublin, had claimed that Power City, Lower Sallynoggin Road, Dun Laoghaire, Co Dublin, had owed it £276,418. Power City had counter claimed for the sum of £267,867.

Yesterday, on the sixth day of the hearing, after out of court talks between the parties, Mr Michael Collins SC, for Magna, told Mr Justice Kinlen that a settlement had been reached. He asked that the claim and counter claim be struck out and no order made.

The judge said it was always wise for parties to try to solve their differences and this case was taking on a life of its own. He congratulated both parties on the settlement and said there must have been compromise on both sides.

In the case, Magna had claimed that it delivered goods to Power City and invoices were drawn up. It claimed that on July 19th, 1991, a balance of £197,650.16 was owing from Power City.

Power City made two part payments for the sums of £56,747.51 and £12,571.26. With credit for the two amounts, the net claim was for £128,330.19. In addition, part of the terms and conditions was that interest of 2 per cent per month was due on overdue monies. The starting date was August 31st, 1991, and the interest claim amounted to £148,088.77. This made Magna's total claim £276,418.96.

Power City had claimed that invoices sometimes had an incorrect price. Some goods were faulty and it was charged for them even though under guarantee. There were excessive service costs incurred outside the guarantee period. Some stock was faulty and never taken back by Magna.

Due to a change in excise duty, Magna should have reimbursed Power City for the alteration and this was never done. Claims on guarantees were not honoured. Products which had been repaired and were taken out of the carton, then sent back to Power City, should have been sent back at a lower price.

Power City's counter claim when broken down between all the claims amounted to £267,867.35.