Petrol station secures order to ensure delivery of fuel

A MOTOR service station operator has secured a temporary High Court order preventing a major oil company refusing to provide …

A MOTOR service station operator has secured a temporary High Court order preventing a major oil company refusing to provide him with fuel following an alleged dispute over proposals to buy out his lease.

The actions of Chevron (Ireland) Ltd, formerly Texaco, had led to his having empty petrol tanks last Wednesday and are having a catastrophic effect on his business, George Carroll claims.

Mr Carroll, who leases the Abbey Service Station, Monkstown, Dublin, from Chevron, claims the company is refusing to supply him with fuel in contravention of his lease.

Ms Justice Mary Laffoy yesterday granted an interim injunction to James Dwyer, for Mr Carroll, restraining Chevron breaching the lease by failing to supply fuel or attempting to forfeit Mr Carroll’s leasehold interest.

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The injunction application was made on a one-side-only basis and was returned to next week. In an affidavit, Mr Carroll said Chevron had offered him €750,000 to buy out his interest in the station last year but later sought to withdraw that offer and, in July was only offering him €330,000 with rental arrears written off.

Alternatively, he could renew his lease on a nine-year basis at €65,000 per annum.

He claimed, after he indicated he was open to discussing the renewal of his lease but would prefer to reach agreement on a buyout, Chevron sent his solicitor a letter outlining concerns about safety at the service station.

While the Dublin fire officer had raised issues about safety, the maintenance of the structure of the petrol station had historically been dealt with by Chevron and its predecessor, Mr Carroll said.

He had no input into this and believed the raising of this issue was an attempt by Chevron to “exert commercial pressure” on him to sell the lease for “a lesser sum”.

On October 8th, Chevron served notice seeking forfeiture of the service station because of what it claimed were alleged breaches of his obligation to make it safe and to obtain a Dangerous Substances Act (DSA) licence. It also alleged non-payment of rent.

Mr Carroll said he had agreed with Chevron no rent would be sought while buyout talks were taking place and arrears would be factored in to any deal.

On November 5th, he was notified by Chevron it would immediately cease its twice-weekly fuel delivery and, by Wednesday last, his tanks were empty. He alleges Chevron has breached its lease with him by not supplying the fuel.