The High Court has ruled that businessman Richard Duggan is entitled to recover €124,502.72 in unpaid rent from Supermac’s Ireland Limited arising from its occupation of premises at 24 High Street, Kilkenny.
The arrears accumulated between April 2020 and March 2021, during the Covid-19 pandemic and while a receiver had been appointed over the property. Supermac’s paid no rent for some months and half rent for others. At the hearing, the company accepted that €124,502.72 remained unpaid.
The central dispute was instead about who was legally entitled to recover that money. Supermac’s argued that the receiver had acquired the right to collect the rent and that, without an express assignment back after his discharge, Mr Duggan lacked standing to sue.
Mr Justice Sean Gillane rejected that interpretation. He held that the lease remained in force throughout the receivership and that appointment of the receiver did not permanently extinguish Mr Duggan’s underlying rights as landlord. The receiver could demand and sue for rent while appointed, but his decision not to pursue the arrears did not leave the right permanently vested in him after discharge.
The receiver was discharged on 2 March 2021 as part of a settlement under which Mr Duggan sold the premises and the sale proceeds were accepted in full and final satisfaction of his liabilities to Everyday Finance DAC. Everyday also expressly disclaimed any legal or equitable right to the outstanding rent and agreed to assist Mr Duggan in pursuing it.
The judge found no evidence that the former receiver had sought the arrears since his discharge or that Supermac’s faced a genuine risk of having to pay twice.
Gillane J also held that interest was recoverable under the lease at the prevailing Bank of Ireland unsecured overdraft rate plus two percentage points. The parties had agreed that this produced €87,999 if Mr Duggan succeeded.
A late application for aggravated damages was refused. The court proposed awarding costs to Mr Duggan and said it would hear counsel on the precise amount due for the final order.