Costa Coffee landlord disputes frustration claim over €367,000 arrears

MBCC Foods (Ireland), trading as Costa Coffee, claims that the lease of the café premises had been frustrated by the pandemic as the business had been forced to shut during the pandemic.

Last week the courts granted an order in favour of MBCC against Campbell Catering, trading as Aramark Food Services Ireland, preventing it from presenting a petition to wind up MBCC in the dispute over unpaid rent.

The ongoing dispute reached the High Court this week with counsel for Aramark disputing MBCC’s claims that the contract was frustrated.

The court was told that MBCC was prepared to lodge the disputed rent arrears of €367,000 with its solicitor pending the outcome of the case. Lyndon MacCann SC, counsel for Aramark, said the fact the money is lodged does not provide security for the debt if MBCC goes bust.

Irrespective of the rent arrears, the lease is due to end in September and counsel for MBCC has assured the landlord that his client will comply with its obligation to leave the premises.

Mr Justice Senen Allen continued the order, pending trial of the action, restraining the presentation of the wind up. He approved directors for exchange of papers and adjourned the matter for mention in November.