Food business sues Deliveroo over alleged defamatory claims

Mexican restaurant says delivery service claims his business is not accepting orders

The owner of a Galway-based Mexican-food restaurant has claimed before the High Court it has been defamed by the food delivery service Deliveroo.

Gastro Grub Limited, which trades under the brand name Tuco's Taqueria, has been located at Upper Abbeygate Street, Galway since 2015. It claims Deliveroo has been engaged in activities, including making untrue and defamatory statements on its website and its app, including that the restaurant is "closed" and "is not currently accepting orders".

The company claims it has built up a good following since it opened and has done take-aways during the Covid-19 pandemic. It worked with Deliveroo for a few months in 2016, it said, but ended the relationship as it thought the commissions sought by the delivery service were not justified.

It had entered into an exclusive agreement for the delivery of its food with another firm.

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In an affidavit, Gastro director Aonghus O’Flaherty said he first became aware of postings about his business on Deliveroo’s website just over a month ago. He could not understand why there was any reference to his business on the defendant’s website as Gastro Grub had terminated its relationship with the defendant several years ago, he said.

Confusion

The comments on the site about his restaurant being closed would cause confusion and result in customers being re-directed to competitors signed up to Deliveroo, he said. The comments on the website that the business is not trading has severely damaged its reputation and resulted in customers going elsewhere.

He said he had made attempts to have all references to Tuco’s Taqueria removed from Deliveroo’s website but the only response was an automated message thanking him for his email.

As a result, Gastro Grubwants various orders against the defendant, including an injunction restraining it using Gastro’s business name and the title Tuco’s Taqueria and logos, or passing itself off as a delivery agent for the applicant.

Mark Harty SC, for Gastro Grub, said his client had tried to resolve the matter but had been "stonewalled" by the defendant.

His client was also contending its trademark has been breached by its unauthorised use on the Deliveroo website and wanted orders restraining such use.

It further wants the defendant restrained from engaging in any activity that would lead people to believe Deliveroo is the food delivery service for Gastro Grub and to cease making any defamatory comments about the applicant’s business.

Permission to serve short notice of the proceedings was granted on Wednesday, on an ex-parte basis, by Mr Justice Senan Allen, who retured the matter to next month.