Garage owner fails to stop Opel ending its sale agreement

THE High Court yesterday refused an order to a garage company which attempted to restrain Opel Ireland Ltd from terminating its…

THE High Court yesterday refused an order to a garage company which attempted to restrain Opel Ireland Ltd from terminating its dealer sales and service agreement at the end of 1996.

Refusing the application for the injunction made by Brennan Car Sales (Newbridge) Ltd, the President of the High Court, Mr Justice Costello, said the plaintiff had not made a prima facie case and there had been a delay in bringing the proceedings before the court.

In an affidavit, Mr Liam Brennan, managing director of Brennan Car Sales (Newbridge), Ballymany, Newbridge, said the company was established in 1986 and was one of the longer established garage businesses in the area.

In January 1992 he entered into a dealer sales and service agreement with Opel Ireland. Mr Brennan said he was informed by Opel Ireland in December 1995 that the agreement would be terminated in December 1996 because it was alleged his performance was not completely satisfactory.

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He was further advised by Opel of complaints made by customers about him in January 1996 and that the franchise was to end last month. He wrote a full explanation in relation to the complaints on May 21st and the reason for the delay in replying. He asked the managing director of Opel Ireland, Mr Arnold O'Byrne, not to be prejudiced by two isolated complaints.

Mr Brennan said he would lose six months business if he lost the franchise and that the sanction or penalty was disproportionate to the complaints made.

He said Mr O'Byrne wrote to him on May 23rd saying he would not be reversing his decision and the franchise would be terminated by June 30th last.

In an affidavit, Mr O'Byrne said he had received a complaint from a potential customer that Mr Brennan was rude to her in early January of this year. He also received a complaint from another potential customer that Mr Brennan was rude to him when he and his wife called to the garage in January also. The couple had alleged Mr Brennan used foul language.

Mr O'Byrne said that when Opel's district manager telephoned Mr Brennan on January 11th in relation to the second complaint, Mr Brennan was rude and abusive to him (the district manager).

Prior to the complaints made concerning Mr Brennan's conduct, which formed the basis of the motor company's decision to terminate the agreement, other serious matters had arisen in relation to Mr Brennan's customers and potential customers.

He did not accept that termination of the agreement would lead to rumour or innuendo in the Newbridge area or throughout the defendant's dealership network nationwide. If such rumour did occur, this would not be the fault of Opel but would be due to Mr Brennan's conduct.