Food hall refusal costs Dunnes €10m

THE “unreasonable” refusal to grant permission for the operation of a high-quality food hall and wine store at Dunnes Stores Ilac Centre branch in Dublin is costing the company €10 million, the High Court was told yesterday.

Dunnes Stores (Ilac Centre) Ltd has brought proceedings against the co-owners of the Ilac premises — Irish Life Assurance plc and Joseph O’Reilly — over the refusal of permission.

On the application of Mr Brian O’Moore SC, for Dunnes, Mr Justice Peter Kelly entered the proceedings yesterday into the list of the Commercial Court, the commercial division of the High Court. The judge made directions for the exchange of legal pleadings and returned the matter to October 15 for further directions.

Dunnes says it sought the defendants’ consent in November 2006 for the use of the ground floor of the Ilac Centre unit as a high quality food/grocery hall, to include the sale of wine, beer and spirits, and to carry out works with that end in mind.

Dunnes says it provided further details on request but that it was informed by agents for the defendants on March 2 last that, on grounds of good estate management, it was not possible to grant consent for the proposed hall.

Dunnes says it was advised by Lisneys Auctioneers and valuers that there was a difference of some €10 million between the market value of its interest without the proposed change of use.