Dunnes must fit out store if 7 other tenants found

A High Court decision means Dunnes Stores has to fit out its anchor store at Dublin’s Point Village only after seven other tenants are secured for the development.

Ms Justice Mary Laffoy yesterday delivered her detailed judgment on issues raised in the action by businessman Harry Crosbie’s Point Village Developments company against Dunnes over the failure to fit out the anchor store.

The matter has been adjourned for a week to allow both sides time to consider the implications of the judgment.

The case arose from agreements of Feb 2008 between Dunnes and Point Village Developments (PVD) for the building and operation of a flagship store at the site.

The agreements originally involved Dunnes paying €46m, plus Vat, for certain works but disputes later arose between the parties. A settlement agreement of Jul 2010 effected variations to the original agreement, including the €46m sum being reduced to €31m.

The parties later disagreed over the interpretation of the part of the 2010 settlement relating to the commencement date of the fitting out of the anchor store and that led to these proceedings.

PVD had asked the court to order Dunnes to specifically perform the part of the settlement agreement relating to the fitting out and argued the fitting out was not dependent on other tenants being in place.

Ms Justice Laffoy rejected arguments by PVD there was a mistake in the settlement agreement affecting the fitting-out provisions. That means the fit-out does not have to commence until seven other tenants are acquired.

The judge also rejected arguments by Dunnes concerning the effect on its obligations of delays to the commencement of works at Point Village. Dunnes was not prejudiced by the delays and, in those and other circumstances, there was no conceivable basis on which the court could rule it would be inequitable to make an order for specific performance of the contract, she said.

While she inferred the major reason for the delays in starting works was due to lack of funding, the court was told works are now being carried out with funding from Nama and will be substantially completed this month.