New twist in rent dispute over fast food restaurant in Limerick

THE long-running dispute between businessmen Pat McDonagh and the operators of a fast-food premises in Limerick has taken another twist, the Leader can reveal.

Mr McDonagh, the managing director of Supermac’s, has made a number of formal complaints in relation to an arbitrator who was appointed to resolve a dispute over the annual rent at a premises the company owns on the Ennis Road close to TUS Gaelic Grounds.

The restaurant premises and drive-thru, known as The Hunrgry Lyons, is operated by businessman John Lyons and his wife, Mary Lyons, who have been leasing the premises from Supermac’s for several years.

Legal proceedings were initiated over the annual rents relating to the premises in 2015 and, in 2017, a Circuit Court judge fixed the rent at €125,000 with a review due in March 2020.

After agreement could not be reached, an independent abritator was appointed, in December 2020, by the Society of Chartered Surveyors Ireland – as per the lease agreement between the parties.

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Having received detailed submissions from both the landlord and the tenants and having personally visited the premises on the Ennis Road, the arbitrator directed that the annual rent payable by Mr and Mrs Lyons to Supermac’s should be reduced from €125,000 to €86,690.

That direction was handed down in September 2021 and Supermac’s subsequently initiated High Court proceedings to have the decision set aside.

Following a hearing in February 2022, Mr Justice Mark Sanfey formally granted the application which was made under the provisions of the arbitration Act 2010.

In his written judgment, Mr Justice Sanfey noted that there was no appearance by the arbitrator or by Mr and Mrs Lyons at the hearing.

Limerick Live has learned that Mr McDonagh and Supermac’s have now lodged “formal complaints” over the conduct of the arbitrator.

Letters of complaint have been sent to the both the Property Services Regulatory Authority and The Chartered Institute of Arbitrators in Ireland.

In the correspondence, seen by this website, Mr McDonagh makes a number of allegations of wrong-doing and claims there was a “breach of trust” on the part of the arbitrator who is based outside of Limerick.

In response to a query from Limerick Live regarding the letter of complaint, Tom Carey, chairperson of The Chartered Institute of Arbitrators – Ireland Branch said it does not discuss complaints with any external parties, under any circumstances.

“As you might appreciate, we follow a strict and rigorous process with respect to complaints, the procedure for which is available on our website,” he stated.

The Property Services Regulatory Authority, which is based in County Meath, has also been contacted for comment but no formal reply has been forthcoming from the State Agency.

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In addition to questioning the conduct of the arbitrator on the day that he carried out an in-person inspection of the premises on the Ennis Road, Mr McDonagh also takes issue, in the letters of complaint, with the outcome of the arbitration process and the proposed reduction in annual rent by nearly €40,000 a year.

He claims the arbitrator “completely ignored” a report prepared by an expert, retained by Supermac’s and that there was “no rational explanation” for the decision to reduce the annual rent relating to the restaurant.

In the letters, Mr McDonagh further claims that he has “suffered serious financial losses” as a result of the actions of the arbitrator.