West Wood fitness club fails in court challenge to rates bill

A fitness club has failed in its challenge to a €49,000 commercial rates bill after a judge rejected a claim it should not pay because the local council was receiving unlawful State aid to provide similar leisure facilities to it.

ILG Ltd, which operates the West Wood gym in Westmanstown Sports Centre, Clonsilla, Dublin, contested a €49,440 rates demand for 2016 from Fingal County Council.

ILG, which operates a number of similar fitness clubs in Dublin, has already contested a rates demand from Dún Laoghaire Rathdown County Council in relation to its West Wood club in Leopardstown on the basis of the unlawful State aid claim.

It has lodged an appeal to the Supreme Court over that case.

In relation to Westmanstown, Mr Justice Max Barrett said it may be that other local authorities provide services which are in competition with ILG facilities, but Fingal council does not.

‘Death knell’

That is the “death knell” to any chance of ILG succeeding in using the unlawful State aid argument as a defence to the Westmanstown rates demand, he said.

The council got judgment for €49,440 against ILG in the Circuit Court in February 2014. ILG applied to the Circuit Court to have the judgment set aside. The court granted the application but on condition that ILG lodge €49,440 and any further rate liabilities with the court in relation to Westmanstown.

Fingal County Council appealed the setting aside to the High Court while ILG cross-appealed the condition in relation to lodging monies in court.

Mr Justice Barrett, in rejecting ILG’s appeal, noted it was not until after the council got its judgment that ILG raised the defence of unlawful State aid in breach of European law.

Even if ILG had placed itself in a position where it was entitled to an appraisal of whether that defence stood a reasonable chance of success, its defence to non-payment of rates was in any event doomed to fail, he said.

ILG’s defence was premised on the claim that Fingal provides sporting and leisure facilities similar to those of ILG, he said, but the evidence of Fingal was that the council does not operate gyms similar to those of ILG.