Galway Bay fm newsroom - Galway-based Supermac's boss, Pat McDonagh has been ordered to reimburse 150 thousand euro to the tenants of one of his fast-food outlets.
According to today's Irish Times, a court in Limerick this week found Pat McDonagh was in breach of a long-standing "oral tenancy agreement" with John and Mary Lyons over a Supermac's premises at Ennis Road Limerick.
An annual rent of 132 thousand euro was agreed in March 1995.
It was also agreed at that time that Supermac's would discharge rates of about 22 thousand euro to Limerick City Council.
However, the court heard that Pat McDonagh stopped paying the rates for the Ennis Road premises in 2009.
Counsel for John and Mary Lyons said this meant they had to pay the rates on top of the rent which totalled more than 150 thousand euro.
Their lawyer also said they are happy to pay rates going forward but were entitled to 'recover' losses after they had overpaid.
The couple's valuer estimated the annual rent should be 86 thousand euro, despite Pat McDonagh's valuer estimating it at 196 thousand euro.
Judge Terry O' Sullivan ordered the rent to be reduced to 125 thousand euro.
The judge also order Pat McDonagh to reimburse the rates previously paid by John and Mary Lyons since 2009 by way of annual deductions to the next fixed rent.
Pat McDonagh of Supermacs must also refund 19 thousand euro paid by the Lyons since proceedings began in 2015, in light of the reduction in rent.
However, Supermac's has confirmed it will be appealing the decision.
