Dispute between Kilkenny Shop and landlord adjourned for talks

A Commercial Court dispute between operator of the Kilkenny Shop and Restaurant on Nassau Street, Dublin, and its landlord has been adjourned to allow out-of-court settlement talks to take place.

Clydaville Investments, which operates the Nassau Street store and many other Kilkenny Group outlets specialising in the promotion of Irish food, crafts and design, has brought proceedings arising from €150 million plans by the landlord, Setanta Centre Unlimited Company, to redevelop the centre.

The case, which is expected to take 10 weeks to hear, was due to commence before Mr Justice Michael Quinn on Wednesday.

However, the matter was adjourned until Thursday after the court was told that the parties have engaged in discussions aimed at resolving the dispute.

The case centres on the proposed redevelopment, to which Clydaville had objected, of the Setanta Centre, which was approved by Dublin City Council and An Bord Pleanála. The Setanta Centre is controlled by the family of Larry Goodman.

Clydaville, represented in the proceedings by Declan McGrath SC, Andrew Fitzpatrick SC and Stephen Byrne BL, claims rules and regulations advanced by the Setanta owners would interfere with pedestrian and vehicular access, including deliveries, to its Nassau Street outlet.

These “purported” rules would completely undermine the operation of the business of the plaintiff if implemented in full, Clydaville alleges.

It further claims that the proposed rules have nothing to do with the operation of the Setanta Centre but rather are designed to get the plaintiff out of the way while the redevelopment is executed.

Clydaville is also concerned about the practicability of restricting access for deliveries to the centre to four hours a day.

Orders and declarations

In its action, the applicant seeks several orders and declarations including the prohibition on the implementation of the new rules and an order preventing the defendant from interfering with ingress/egress from the premises.

The defendant, represented by Eoin McCullough SC, Rossa Fanning SC and John Lavelle BL, denies the claims.

On Wednesday, Mr McGrath told the court that settlement talks had been taking place between the parties. However, it was not clear at this stage if those discussions would bring about a resolution.

Counsel said the issues between the parties were complex and involved a “mountain of paper” and asked for additional time to see if more progress could be made.

Mr McCullough for the defendant said his side was consenting to the adjournment.

Mr Justice Quinn, noting that the case would take some time to hear if no agreement could be reached, agreed to adjourn the case to Thursday afternoon when the court will review the level of progress being made between the parties.