Judgment: 2022-12-16 · Court archive

High Court awards landlord €454,117.33 in unpaid rent

The court granted summary judgment after finding the lease barred the tenant from setting off its unquantified repair claim against rent. Whether enforcement of the order should be stayed was left for further submissions.

High Court · [2022] IEHC 731

Who, what, where, when and why

Who
  • Propmaster Ventures Ltd (Applicant)
  • Fun Galaxy Ashbourne Ltd (Respondent)
  • Niamh Hyland (Judge)
  • Sharon Farrell
What

The court granted summary judgment after finding the lease barred the tenant from setting off its unquantified repair claim against rent. Whether enforcement of the order should be stayed was left for further submissions.

Where

Places mentioned in the report

  • Unit 1
  • Finglas
  • Dublin 11
When

Judgment:

Other dates in the report
  • 29 July 2019; 6 June 2019; 6 September 2019

    The dispute concerns a 10-year lease dated 29 July 2019 for Unit 1, North Road, Finglas, Dublin 11. The tenant took possession on 6 June 2019 and received a three-month rent-free period. Rent of €250,000 a year was due from 6 September 2019, payable quarterly. The landlord initially sought summary judgment for a smaller amount; at the hearing, the parties clarified that €454,117.33 was then outstanding. The tenant accepted that this sum was due under the lease.

Why

Reasons reported in the judgment

The High Court has granted Propmaster Ventures Ltd summary judgment for €454,117.33 in unpaid rent from Fun Galaxy Ashbourne Ltd, finding that the lease expressly barred the tenant from setting off a counterclaim against rent. The court adjourned the matter to allow the parties to consider whether a stay of the order should be sought and make submissions on that question.

The High Court has granted Propmaster Ventures Ltd summary judgment for €454,117.33 in unpaid rent from Fun Galaxy Ashbourne Ltd, finding that the lease expressly barred the tenant from setting off a counterclaim against rent. The court adjourned the matter to allow the parties to consider whether a stay of the order should be sought and make submissions on that question.

The dispute concerns a 10-year lease dated 29 July 2019 for Unit 1, North Road, Finglas, Dublin 11. The tenant took possession on 6 June 2019 and received a three-month rent-free period. Rent of €250,000 a year was due from 6 September 2019, payable quarterly. The landlord initially sought summary judgment for a smaller amount; at the hearing, the parties clarified that €454,117.33 was then outstanding. The tenant accepted that this sum was due under the lease.

The tenant’s director, Sharon Farrell, said the landlord had agreed to carry out works to make the premises suitable for the planned businesses, including a childcare service and a family entertainment centre. She said the landlord’s failure to complete the works prevented the childcare facility from operating and caused loss and damage. The family entertainment business opened in December 2019. The landlord disputed the tenant’s position and said the lease required rent to be paid without deduction, set-off or counterclaim.

Justice Niamh Hyland said the tenant’s asserted defence to the rent claim depended on setting off its repair-related claim. The lease expressly prohibited that route, and the tenant had not argued that the clause was invalid or did not apply. The judge therefore found no issue to be tried over the rent due and said any award on the counterclaim could not be set against it.

The judge also said that, even if set-off had been available, the tenant had not quantified its alleged losses or provided a breakdown, supporting documents or an expert report in the affidavits before the court. She considered it inequitable to use the claim to delay judgment, noting that the tenant had also raised a repair-related counterclaim in separate Circuit Court ejectment proceedings. The High Court did not receive those pleadings, and the judge did not determine their details.

The judgment awarded the landlord €454,117.33. The final page records that the case was adjourned to permit consideration and submissions on whether a stay should be sought; it does not record a decision on a stay.

Read the original court judgment

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