The Supreme Court has refused to order Eircell to continue supplying prepaid mobile phones to a retailer operating mainly in County Kerry while a wider contractual dispute awaits trial.
Noel Ó Murchú, trading as Talknology, sold mobile phones through several outlets in the south of Ireland. He claimed that from May 1998 he operated as an authorised Eircell agent, buying prepaid “Ready to Go” handsets through Sigma Telecom Limited and bringing customers onto the Eircell network.
By summer 2000, substantial debts had arisen between the parties and repayment arrangements were made. Eircell also sought to have Mr Ó Murchú sign standard written agency agreements. He refused, saying the proposed six-month term, with a possible further six months, was commercially unsuitable given his shop leases and other commitments.
The dispute escalated when Eircell prevented a large order of Ready to Go phones being supplied ahead of Christmas. Mr Ó Murchú sought interlocutory injunctions requiring supplies and his agency status to continue pending trial.
The Supreme Court differed from the High Court on one point. Mr Justice Geoghegan found that there was a serious issue to be tried as to whether an oral or implied agency agreement existed and whether Eircell had breached it by stopping supplies.
However, that did not justify an injunction. The court held that Mr Ó Murchú’s alleged losses were essentially financial and could be compensated by damages if he ultimately succeeded. Any oral or implied agency arrangement would also have been terminable on reasonable notice, limiting the likely period of recoverable contractual loss.
The court further found that the balance of convenience favoured Eircell. An injunction would require continuing supervision of a trading relationship and would effectively compel two parties with a difficult commercial relationship to continue doing business together.
The appeal was therefore dismissed and the High Court refusal of the injunctions was affirmed.