Supermacs threaten to sue Irish Water (twice) over mains connection
FAST-FOOD chain Supermac’s twice threatened Irish Water with legal action in a row over connecting one of its new restaurants to a mains pipe.
The restaurant group – led by founder Pat McDonagh – first threatened to sue over the price it was being charged for a connection and later over delays in getting work started.
Mr McDonagh has been a vocal critic of the ‘astronomical’ cost of litigation in Ireland, particularly when it comes to personal injury cases against his company.
Correspondence released by Irish Water show the row erupted when Supermac’s tried to have a new restaurant at Kinnegad Plaza in Co. Westmeath at the M4/M6 junction connected to a mains water supply and sewerage in late 2018. Irish Water told the company the cost would be €292,000, which solicitors for Supermac’s described as ‘grossly excessive and exorbitant’.
In a legal letter to Irish Water in April 2019, the restaurant chain said its own independent contractors indicated the job could be done for just over €175,000.
The letter stated: ‘Unless you are in a position to confirm you will carry out the works in accordance with the enclosed quotation provided by an independent contractor or alternatively allow the independent contractor to carry out the works, it is our client’s intention to immediately issue proceedings against you with a view to challenging your right to maintain a monopoly in the provision of services to the detriment of our client.’
The letter also warned of any further delays in progressing the works saying Supermac’s would be seeking recovery of any losses.
It continued: ‘It is noteworthy that our clients lodged an application for these connections with you on the 29th November last [2018] and you are only now reverting to them with a quotation. This delay is totally unacceptable.’
It warned of a ‘serious financial loss’ to Supermac’s if there was further disruption to the project.
In response, Irish Water said a lower revised offer had now been submitted after it was able to find a more suitable location to connect the restaurant. It said these were ‘closer to Irish Water existing networks than those identified by your client’s designers’ according to a letter from its legal services department.
Internal emails also detail how Supermac’s project management team reacted with disbelief to the original quote.
One email from the project manager to the utility firm said:
‘That can’t be the correct figure to carry out these works, I’m assuming it’s a typo.’
In May 2019, Supermac’s sent an email wondering why there were no ‘operatives on the road today’.
A few days later, its lawyers were back in touch with Irish Water saying it appeared ‘no steps’ had been taken to get work started.
The company said it planned to open the restaurant by the end of the month but it would not be possible without mains connection and in that instance Supermac’s would seek damages.
The letter said: ‘In the event that the premises is unable to open because of the lack of water and sewerage facilities, our clients will be holding your clients responsible for any losses incurred.’
However, Irish Water responded to say it had not yet been granted the road opening licence it needed from Westmeath County Council.
‘It is not correct to state that our client has taken no steps to commence the work,’ said a letter.
‘Irish Water would like to assure your client that every effort is being made to ensure the works will be completed by the proposed date, and earlier if possible.’
Late last year, Supermac’s Mr McDonagh rounded on Irish Water over the connection controversy, saying its charges were placing a ‘stranglehold’ on development.
He said at one stage Irish Water quoted €720,000 for the connection for Kinnegad Plaza. However, this figure does not appear in any of the correspondence provided by Irish Water about the discussions.
Mr McDonagh said at the time. ‘I think it is absolutely a stranglehold on development. People are putting off commercial developments as they try to see how realistic it is at the moment.’
A spokesman for Irish Water said connection charges policy is determined by the Commission for Regulation of Utilities and the only way they can be modified is if the scope of works involved changes.
He added: ‘In this instance an initial connection offer was provided by Irish Water based on the connection application and point suggested by the developer’s agent.
‘Following a subsequent site investigation by Irish Water’s own design engineers, the scope of the works was reduced due to a revised (closer) connection point, enabling a revised offer to be made.’
‘That can’t be the correct figure. I assume it’s a typo’