Firm secures injunction stopping agents terminating parcel delivery and collection in Munster

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A major logistics and parcel delivery firm has secured temporary High Court injunctions against two of its agents that allegedly want to discontinue their role with the business due to the Coivd-19 emergency.

Interlink Ireland Ltd, which trades under the name DPD secured preventing two of its agents, it claims are using the virus outbreak for commercial reasons, from terminating agreements to deliver and collect parcels in the Munster area.

The orders were obtained, on an ex-parte basis, against Mr Joe Corcoran, of The Drive, Harbour Heights, Rochestown Road, Passage, Co Cork and Mr Bernard O'Brien Rockwood, Old Road, Cashel Co Tipperary.

Mr Corcoran is network area operator for DPD for all of Cork, while Mr O'Brien is the firm's operators for Limerick and North Tipperary area, which are both key areas for the company counsel said.

Mr Justice David Barniville was told that in recent days the two agents informed Interlink that in light of the covid-19 pandemic they were no longer in a position to discharge their commitments under the agreements.

Interlink represented in court by Rossa Fanning SC said that no reasons have been given to it how covid-19 has effected their businesses to the point that they can no longer to discharge their commitments.

Counsel said that the agency agreement could only be terminated by the giving of six months notice. This would allow his client make alternative arrangements to service an area affected by any agent's withdrawal.

Since the outbreak interlink's business has dramatically increased, counsel said, adding that during what has been the busiest times in its history the company is providing importance services including the delivery and collection of medicines, medical devices, and other vital supplies to people all over Ireland.

Counsel said that following communications with a solicitor for both agents Interlink was told that defendants would cease providing the services on March 31st last immediately, or in the alternative if a substantial lump sum was paid to the defendants they would continue to operate the service.

There was "an element of blackmail" in those proposals counsel said. There is no contractual obligation on Interlink to make such payments.

As none of the other 30 plus agent had made any complaints about the effects of the pandemic counsel said his client believes are "seeking to take advantage" of the international health emergency "to apply commercial pressure on Interlink."

In the current climate where many businesses are in lockdown it would be impossible for interlink to source new depots and make fresh business arrangement's for those areas counsel added.

Any disruption to deliveries in the areas served by two defendants would badly damage Interlink's reputation, counsel said.

Counsel said that Interlink, whose HQ is in Athlone, Co Westmeath and is part of an International distribution business, operates 33 regional depots in Ireland.

It has been in close contact with all of its agents over the recent days and months in relation to recent events.

The defendants never informed the company that they were having any difficulties or were considering exiting the agreements, counsel said.

Interlink had aided the companies in recent years as they expanded the areas they covered, and had paid them advances on their March invoices, counsel added.

Following submission Mr Justice Barniville granted the company interim injunctions preventing the agents from terminating the agency agreements between Interlink and the defendants.

The orders also require the defendants to continue to operate the business as agreed between the parties.

The judge said while he had only heard one side of the argument he was satisfied from the evidence put before the court to grant Interlink temporary injunctions against the defendants.

The logistics firm had made out a strong case, damages would not be an adequate remedy and the balance of convenience also favoured the granting of the injunctions, he said.

The judge made the matters returnable to Friday's sitting of the court when the defendants could make any arguments they want in relation to the claims against them.