Ireland: Wesumat(Irl) Ltd Casuality of New Car Wash Contract
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Monday, 28 July 2008 |
Wesumat(Irl) Ltd who had the car wash contracts for the Shell and
Statoil service station networks has lost out on the new Topaz tender.
Denis Bergin MD of Wesumat (Irl) Ltd has said the company will have to go into liquidation after it failed to retain a maintenance contract with Topaz Energy, the firm that owns the former Shell and Statoil service stations in Ireland.
With differences of opinions by both parties on the contract, Wesumat got legal advice and sought a High Court injunction to prevent Topaz from terminating its contract.
Mr Justice Michael Peart said that the case centred on differing views about the basis on which Topaz could terminate its contract. Wesumat said the agreement could be ended only if the company was at fault, but Topaz said it could be terminated with four weeks’ notice.
‘‘Since the losses are clearly quantifiable, and are purely commercial in nature, and the defendant is a mark for those damages, an award of damages is an adequate remedy, even if a winding up of the company is inevitable,” said the judge. He refused the injunction.
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Editors Note & Background
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