Salthill promenade shop says nearby competing kiosk is hitting frozen fruit tub sales

High Court Reporter

The operator of a shop on Galway's Salthill promenade is seeking a High Court injunction preventing the sale of tubs of frozen fruit from a kiosk just 350 metres away.

Blackrock Cottage Development Ltd operates a purpose-built shop at the end of the promenade.

It says it has an exclusive agreement with Álainn Superfoods to supply it with frozen fruit-based edibles in tubs within the area of Salthill and Knocknacarra, or the "territory" as it is referred to in the agreement.

In an affidavit, Blackrock director Brian McHugh said that on August 14th, 2023, Álainn entered an agreement to supply the tubs exclusively to Blackrock in the "territory" for a five-year period.

Blackrock paid Álainn an initial fee of €24,000, he said.

On May 15th last, he said that "in blatant breach" of the agreement, the defendant began selling the tubs from a premises known as "The Kiosk" just 350 metres from the Blackrock shop.

A cease and desist letter was sent by Blackrock's solicitors, but there was no response, McHugh said. The sale of the goods continued unabated, he said.

He also said the sale of the goods from the Kiosk, which is "more prominently positioned" than the Blackrock shop, has severely impacted the shop's sales.

As a result, Patrick M Keane, solicitor for Blackrock, applied on Tuesday on a one-side only represented basis, for an injunction to compel the defendants to perform its obligations under the agreement or alternatively to restrain it from breach of its terms.

Judge Brian Cregan said he would grant short service of the papers on the defendant, which has registered offices in Gort, Co Galway, and the case could return on Thursday.

He said he would be minded to grant an injunction unless there was an argument against it.