A High Court judge has granted the operator of five coffee shops located in several Tesco stores a limited injunction preventing the supermarket chain from taking possession of the premises following a dispute over rent.
On Friday, Mr Justice Brian Cregan found that Tesco Ireland Ltd did not correctly follow an agreed protocol to terminate its agreement with CBTL Ireland Ltd, which operates the Brentwood Coffee group of cafes.
The court previously heard that CBTL struck a deal with Tesco several years ago to set up coffee shops in its stores under licence agreements.
The judge extended a short-term injunction restraining Tesco from taking possession of the five premises, although he noted that the order “only buys some time” for CBTL, “maybe a matter of weeks”.
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The cafes are located at Tesco stores in Tullamore, Co Offaly; Ardkeen on the Outer Ring Road in Waterford; Distillery Road in Wexford; Mill Road in Youghal, Co Cork; and Powerstown Road in Clonmel, Co Tipperary.
The proceedings arise from a dispute over CBTL’s alleged non-payment of rent, with Tesco claiming CBTL now owes upwards of €100,000 in arrears.
Tesco sent a letter to CBTL on March 12th stating that it was in breach of the licensing agreement, and that Tesco would be taking possession of the five premises, the court heard.
In the proceedings, CBTL claimed both parties had agreed to a reduction in the rent, and therefore, they do not owe any money to Tesco in arrears.
However, Mr Justice Cregan on Friday said CBTL’s claim of an agreed reduction in rent was made without merit. On the evidence before the court, he said this claim did not reach the threshold to merit it being tried at trial.
Mr Justice Cregan adjourned the issue of legal costs in the case for one week.
