Hire company sues An Post over alleged breach of contract

A hire company is suing An Post claiming it breached a contract to hire vans from it

Hireservices Ltd and its unlimited sister company Hireservices [E], are seeking specific performance of a an alleged contract for the hire of motor vans, together with damages for breach of that agreement.

They claim An Post agreed to hire the vehicles for five years but ceased to make agreed rental payments and sought to return the vans before the end of the agreed period of he contract.

The agreement began in 2006 with the hire of 20 vehicles followed by another 20 in 2007. The breach of contract occurred a year later, is is claimed.

An Post denies the claims and says the vans were supplied on an “as needed basis”, whereby it would lease the vans on a week by week basis and could return the vans at any stage once they were no longer required. An Post also brought a counterclaim against the hire companies.

Later, An Post sought a strike out of the case because the hire companies allegedly failed to discover documents which the postal company sought for its defence. Alternatively, it sought an order that Hireservices make further and better discovery.

In 2018, the High Court refused the An Post application and it appealed.

In a judgment this week, the Court of Appeal allowed the An Post appeal and substituted the High Court refusal with an order requiring the hire companies to swear a composite single affidavit of discovery of certain documents.