Flogas Ireland wins High Court action
Court found in favour of gas provider against illegal cylinder activity
Print14 June 2013
Flogas won its High Court case against illegal cylinders
Flogas Ireland Limited has won two Commercial High Court actions against Tru Gas Limited, Patrick Morgan and Langan Fuels Limited, separately. The proceedings included claims by Flogas that Tru Gas of Castlebellingham, Co. Louth was a leading "pirate filler", supplying retailers of liquid petroleum gas ("LPG") cylinders nationwide and involved in a joint operation with Langan Fuels of Kilmacow, Waterford in unlawfully interfering with and selling Flogas LPG cylinders.
Following the decision of the High Court, Richard Martin, managing director of Flogas Ireland commented: "Flogas is very pleased that its property rights have been upheld by the Court and that the activities of the defendants in this case have been heavily punished by the Court. It sends a powerful signal to the market about the damaging aspects of illegal cylinder filling activity."
He went on to say that Flogas will continue to invest in its cylinder market in Ireland to support its dealers and consumers with the very best cylinder products available. He said: "We acknowledge and appreciate all the support we have received from our dealers and distributors in this case and we are prepared to take legal action against any pirate fillers to defend our reputation and market position."
Flogas commenced proceedings in November 2011 seeking preliminary relief by way of interlocutory injunctions, which were granted, restraining Tru Gas and Langan Fuels, from filling, modifying or retaining any LPG cylinders the property of Flogas, or bearing the name or mark "Flogas" until the conclusion of the proceedings. In December 2011 Patrick Morgan, a director of Tru Gas, was joined by the court as a co-defendant.
On 1 March 2013 judgment was granted against Tru Gas, Morgan and Langan Fuels. The orders included a declaration that in supplying LPG in cylinders which bear the Flogas name, and bear a statement that the cylinder is its property and irrespective of whether those cylinders are delivered directly to end users or to retailers for onward sale, Flogas at all times retains ownership in them.
The court prohibited Tru Gas, Morgan and Langan Fuels, their respective servants or agents from filling, selling, or in any way interfering with Flogas branded cylinders. In the case of Tru Gas and Morgan, the court prohibited handling or taking possession of Flogas branded cylinders. The defendents were ordered to immediately return all cylinders and pallets in their possession to Flogas.
On 16 May 2013 the court ordered Tru Gas and Morgan to pay €289,000 and Langan Fuels to pay €110,000 in damages to Flogas. Flogas was awarded the legal costs of both cases. It is anticipated that the award of legal costs of the actions will be in excess of €670,000 and VAT.
On 1 May 2013 Tru Gas was placed in voluntary liquidation. Flogas intends to enforce the court order against the liquidator of Tru Gas and Morgan and to pursue both parties for the respective legal costs of the actions and similarly in respect of Langan Fuels.
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