The "unreasonable" refusal to grant permission to operate a high-quality food hall and wine store at Dunnes Stores' Ilac Centre branch in Dublin is costing the company some €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 Brian O'Moore SC, for Dunnes, Mr Justice Peter Kelly entered the proceedings yesterday into the list of the Commercial Court, the High Court's commercial division. The judge made directions for the exchange of legal arguments and returned the matter to October 15th for further directions.
Dunnes says it has held the Ilac Centre premises at Moore Street, Dublin, since December 1989 on foot of a 145-year lease. The permitted use of the premises under that lease was as "a department store". The lease included a covenant not to sell intoxicating liquor.
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 hall to include the sale of wine, beer and spirits.
Dunnes says it provided further details of the planned food hall on request, but that it was informed by agents for the defendants on March 2nd last that, on grounds of good estate management, it was not possible to grant consent.
Dunnes says it was advised by Lisneys Auctioneers and valuers there was a difference of some €10 million between the market value of its interest without the proposed change of use.