Point Village begins court action against Dunnes

An action brought by Harry Crosbie’s Point Village Development firm against Dunnes Stores over its failure to fit out an anchor store at Dublin’s Point Village has opened before the High Court.

The proceedings arise from agreements entered into in Feb 2008 between Dunnes Stores and Point Village Development for the building and operation of a flagship anchor store at the North Quay Wall at Point Village.

The agreements originally involved Dunnes paying €46m, plus Vat, for certain works. However, a number of disputes arose between the parties and court proceedings were initiated.

The issues were resolved following a settlement agreement of Jul 2010, which resulted in a series of variations to the original agreement including the €46m sum being reduced to €31m.

However, the parties disagreed over the inter-pretation of part of the settlement that relates to the commencement date of the fitting out of the shop by Dunnes, which Point Village Developments claim should have been completed by Apr 2011.

Point Village Developments wants the court to order Dunnes to specifically perform the part of the settlement agreement that relates to the fitting-out of the anchor store.

Dunnes is opposing the action and reject any allegation it has failed to abide the terms of the 2010 settlement agreement.

Opening the case Michael Collins, counsel for Point Village Developments, said the court was effectively being asked to interpret a clause of the Jul 2010 agreement.

Mr Collins said that the relevant clause required Dunnes to have completed the fit-out of the anchor store 26 weeks after a Certificate of Practical Completion had been issued in respect of the building.

That certificate is issued to confirm that all works included in a contract have been satisfactorily completed to an agreed standard. Counsel said that a certificate in respect of the development was issued in Sep 2010.

Under the terms of the agreement, which counsel said could not be clearer, Dunnes then had 30 days to begin to fit out the anchor store, which it had 26 weeks to complete. The completion date of the fit-out was Apr 2011.

However, he said that Dunnes did not commence to have the store fitted out and was in breach of the terms of the agreement.

Opposing the proceedings, Dunnes claimed it was not obliged to start fitting out the store until at least seven other tenants had been acquired for the development, which it said had not been done.

Dunnes, represented by Brian O’Moore, also claimed Point Village Developments failed to complete the adjoining Point Square development competed by a certain date, as had also been agreed in the Jul 2010 settlement.

In reply, Mr Collins said his client rejected Dunnes interpretation of the agreement, which counsel said Dunes was trying to “revise, redefine, and re-interpret”.

The case continues before Ms Justice Mary Laffoy.