The High Court has ordered the defendants to pay Island Ferries Teoranta €92,243 in compensatory damages over the detention of one of its vessels and the withdrawal of permits for two vessels at Rossaveel Harbour in 2005. The award followed an earlier finding that a passenger charge imposed at Rossaveel was unlawful.
In a second judgment delivered on 26 June 2012, Mr Justice Cooke assessed the company’s damages after hearing further evidence and submissions at a resumed hearing in February. He awarded €67,243 in special damages and €25,000 in general damages. He refused exemplary damages.
The dispute arose after the Department demanded €201,476.74 in outstanding harbour charges. The company challenged the charges’ legality. On 17 August 2005, the Department revoked the passenger permits for the MV Ceol na Farraige and MV Draoicht na Farraige. The Ceol was detained at Rossaveel the next day. The Draoicht was diverted to Galway, while smaller vessels covered the Rossaveel service. The vessels and permits were restored after the company agreed to provide a €200,000 bond, effective 3 October 2005.
The court said the detention was intended to recover charges that had not been lawfully imposed. It found that the detention amounted to trespass and that the permit revocation was also connected to the unlawful demand. This established an entitlement to compensatory damages in principle.
The €67,243 special-damages award comprised €28,000 in bond commission, €24,370 for extra costs arising from the non-operation of the two main vessels, €3,005 for using the Draoicht on the Galway route, and €11,868 in fixed costs for the detained Ceol. The judge rejected a €38,119 claim for interest costs because the company had not shown that the funds secured for the bond would otherwise have reduced its loan interest. He also rejected a €84,942 lost-profit claim, finding it had not been proved that the competitor’s passengers would otherwise have used Island Ferries. Staff costs and administration and travel expenses were not allowed as special damages.
The court added €25,000 in general damages for business disruption and loss that could not be measured under the specific claims. It found the Department had acted in good faith and that the conduct did not justify punishment or exemplary damages.
The judge also stated, conditionally, that if damages were payable under section 14 of the Competition Act 2002, they would follow the same assessment. The main judgment had made a conditional finding on the company’s claim that the Minister abused a dominant position. The €92,243 order is described in the judgment as compensatory damages.