Ruling against Cork hotel car service may have 'national consequences' for similar firms

The court has ruled that a courtesy car service was operating without a licence at Fota Island Resort

Judge Roberts said that Fota Island Resort could appeal his decision. File picture

A Cork court has ruled that a courtesy car service operating without a licence at a luxury five-star hotel in Cork was doing so unlawfully which may have “national consequences” for businesses across Ireland.

The National Transport Authority (NTA) took the case against Xiu Lan Ltd of Fota Island Resort pursuant to Section 46 of the Taxi Regulation Act 2013.

Fota Island Resort had separately been mired in recent legal battles over its ownership in the High Court.

It was alleged that the accused was operating a vehicle at the Elm Tree Restaurant, Killahora, Glounthane, to carry people for reward while the driver did not hold a licence to drive a small public service vehicle. This was contrary to Sec 22(4) of the Taxi Regulation Acts 2013 and 2016 and therefore an offence, it was alleged.

At Midleton District Court, Judge Colm Roberts said that the NTA had made its case that the courtesy car service did fall under the legislation as set out. “It is a conviction,” he said. “I do have some sympathy for the hotel and employees in that I do believe they were acting on advice,” Judge Roberts said.

But that advice was not a correct interpretation, he said. “I do believe the service is one requiring a public service licence,” he said.

Barrister for Xiu Lan Ltd, Brian Hallissey BL, said that "this is not a straight-forward case.”  “I’d have to respectfully say it’s borderline. It is not a clear-cut issue.” 

Lack of clarity

The NTA had relied on a previous UK authority to support its prosecution against Fota which Mr Hallissey did not believe the High Court had endorsed in a previous decision.

Judge Roberts said that Fota Island Resort could appeal his decision. “I do understand that this has national consequences,” Judge Roberts said.

If Mr Hallissey was saying that the case lacked clarity then it should be appealed, he said. Mr Hallissey said that he would need to take further instruction from his client but he understood there would be a further case on this matter.

“I would have no difficulty approving an appeal by way of a case stated in the circumstances,” Judge Roberts said. While District Court decisions can contradict each other, “a High Court decision may give more clarity."

This was “the sort of case that may benefit” from an appeal, Judge Roberts said.

Mr Hallissey said: “This is a well-known, well-run business. There is no indication there was anything underhand. Numerous hotels around the country are operating a courtesy car service."

'Bad luck, bad timing'

Judge Roberts said that it was “bad luck, bad timing” for Fota Island Resort. The judge said that the “salubrious hotel” would face a fine of €500 with two months to pay.

Barrister for the NTA, Diarmuid Collins BL, said that the NTA would look for €1,000 in costs from Xiu Lan Ltd. This amount came “nowhere close” to the costs of the case,” Mr Collins said.

Judge Roberts said: “The NTA had to take the case, they are not doing it for fun. €1,000 is just a small contribution to their costs."

Mr Collins said that there had been a similar case before but the defendant had pleaded guilty. “There are licences available for courtesy cars,” he said.

Judge Roberts said: “I totally accept that the NTA is correct to take proceedings and had no option. It’s a practice I'm not fully convinced can continue in the way it’s being done.” 

The NTA regulates small public service vehicles of eight seats or less. It contends that courtesy cars run by hotels must be licensed.

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