Court rejects shop owner's attempt to stop landlords from opening outlet next to his

After the grocery shop operator entered a rental agreement with the outlet's owners, those same owners set up shop next door with their own vegetable store

The operator of a Rabat grocery shop has failed to obtain an injunction stopping his landlords from opening a green grocer next to his shop.

In the request for an injunction, filed by the operator of the Gourmet Convenience Shop, Martin Agius claimed that in January 2020 he had entered into a rental agreement with the owners of the outlet, Paul and Carmen Vassallo, paying them €193,000 for the shop’s goodwill and to have exclusive rights to the name.

Agius’ lawyers told the court that he had found out that the couple were planning to open another grocery outlet adjacent to his, in violation of the conditions of the contract as well as competing with it for the clientele for which he had paid.

The landlords rejected the argument, pointing out that their shop will be called “Veg Venue” and would be selling fruit and vegetables, unlike the products sold at the Convenience Shop.

Mr Justice Ian Spiteri Bailey, presiding the First Hall of the Civil Court, observed that the contract states the money had been paid “by way of premium or key money” and does not mention goodwill. Consequently there was no obstacle to the opening of another outlet offering similar products.

The judge commented that it was in the interest of the operator of the Convenience Shop to include a non-competition clause in the contract and that, in the absence of such a clause, he could not stop other shops from opening nearby.

The request for the warrant was turned down.

Lawyer Ishmael Psaila appeared for the Vassallos. Lawyer Marlon Borg appeared for the Convenience Shop.