We recently reported (see here) on the first case of its kind under the newly expanded UK regime for competition damages claims, which saw the first application to the CAT for an injunction under section 47A of the Competition Act 1998. That case settled (see here) in January before the CAT could hear the injunction application. However, on 18 February 2016, the CAT published notice of a claim against Tesco Stores Limited (“Tesco”) which seeks, inter alia, an injunction restraining Tesco from enforcing a covenant in a land transfer agreement.
In 1997, Shahid Latif and Mohammed Abdul Waheed (the “Claimants”) sold land to Tesco with the transfer agreement containing a covenant precluding land retained by the Claimants from being used for the “sale of food, convenience goods or pharmacy products”. The Claimants claim that the covenant is a breach of the Chapter I and/or Chapter II prohibitions contained in the Competition Act 1998. In particular, they claim that the covenant adversely affects trade within the UK as it adversely affects their ability to develop and lease the retained land and/or it adversely affects the sale of groceries and pharmacy products within the relevant geographic area.
The Claimants seek a declaration from the CAT that the covenant is void and unenforceable, an injunction restraining Tesco from enforcing the covenant and damages. They have applied for a fast-track hearing and a case management conference is listed for 21 March 2016.