The operators of a Limerick-based fast-food restaurant have claimed before the High Court that Supermac's founder and businessman Pat McDonagh is trying to destroy their business.
The action has been brought by John and Mary Lyons, who operate The Hungry Lyons fast-food restaurant from a premises on Ennis Road in Limerick, which is allegedly owned by Supermac.
Their restaurant is located in one of two connected adjoining properties – the other is used as a bowling alley and amusement arcade known as 'Funworld'.
They claim that in breach of the terms of a lease agreement they obtained in respect of their premises in 2018 Supermac's and Mr McDonagh have been selling fast food from Funworld.
They seek an injunction restraining that activity, which they claim is part of "a concerted attempt by Mr McDonagh to destroy" their business.
The claims are denied.
The Lyons, from Mungret Co Limerick, claim that the entire premises is owned by Supermacs Ireland Ltd, but they claim they pay the rent on the property to Supermac's managing director Pat McDonagh.
They also claim that Mr McDonagh is Funworld's managing director and that it is also a subsidiary of Supermac's.
The Lyons claim that they had for many years operated a Supermac's franchise from the premises up until 2019, but claim that arrangement ceased due to the "commercial pressure" that was placed on them by the defendants.
Tenancy agreement
In 2015 the couple took Mr McDonagh, in his then-alleged capacity as landlord of the premises, to the Circuit Court where they sought a new tenancy agreement in respect of the property.
They claim that in 2018 the Circuit Court made orders including that they were entitled to a 20-year lease with rent of €125,000 per year.
They claim that the lease agreement includes a non-compete clause where the landlord cannot assign or sub-let any part of the premises to anyone who intends to operate a fast-food restaurant or delicatessen.
The plaintiffs claim that in breach of the 2018 lease agreement, the defendants have installed cooking and storage facilities in the Funworld, and have begun selling food from the premises.
They claim that works on the facilities commenced late last year.
It is claimed that in recent weeks and months Funworld advertised on social media that it was offering children's birthday parties with fast food and that it was selling Supermacs Food directly from the premises.
The Lyons did seek an injunction under Section 160 of the Planning and Development Act in respect of the works being carried out on the premises, claiming that it was unauthorised development.
That application was dismissed by Limerick Circuit Court, a decision which they have appealed.
The defendants deny any planning breach has occurred.
'Direct competition'
In a sworn affidavit to the court, Mr Lyons said that since obtaining the lease in 2018, "against Mr McDonagh's wishes," he has retaliated against them, first by withdrawing their Supermac's franchise, and now "by going into direct competition with us."
In their proceedings they seek an injunction restraining the defendants from assigning, letting, to any person who operates or intends to operate a fast-food restaurant or delicatessen from the adjoining property.
They also seek an injunction restraining the defendants from selling fast food from the adjoining property.
The injunctions would remain in place pending the outcome of the full hearing of the dispute.
The Lyons previously obtained permission from the High Court to serve short notice of the proceedings on both Supermacs Ireland and Mr McDonagh, who are the defendants in the couple's action.
The matter was briefly mentioned before the High Court on Monday.
Barry Mansfield BL, instructed by solicitor Owen Swaine for the plaintiffs, said the matter was urgent, but it was accepted that the defendants require time to respond to the claims against them.
Noting the urgency, Mr Justice Brian O'Moore said he was provisionally listing the injunction application for hearing for a date later this month.
Story by Aodhan O'Faolain
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