Tru-gas Ltd in Castlebellingham have been ordered to pay €289,000 in damages over the unauthorised re-branding and re-filling of bottled gas cylinders.
Known in the trade as pirate or rogue refilling, it involves taking back empty cylinders from customers, re-filling them and placing new names on them by either grinding down embossed steel marks of the genuine supplier or placing a new sticker over it. They are sold to the public at lower prices than are normal.
Calor Gas Ltd and Flogas Ltd, who account for 86% of the bottled gas market, brought high Court proceedings over this activity against one of the smaller operators, Tru-gas Ltd, of Castlebellingham, Co Louth, and its principal Patrick Morgan.
Calor obtained orders, on consent, against Tru-gas restraining them from interfering with, re-badging or re-filling the cylinders. Flogas’ application for similar injunctions against the defendant was also settled following the Calor orders.
The Flogas case then came before Mr Justice John Cooke for assessment of damages who awarded at total of €289,000 against the local company.
He awarded €289,000, including €60,000 for the cost of replacing cylinders, €75,000 in general damages and €100,000 in aggravated damages. Another €54,000 was for loss of profits and for an advertising campaign warning the public of cheap imitations.
n his judgment, Mr Justice Cooke said he had heard evidence on behalf of Flogas that the company’s sales and distribution personnel became concerned in early 2011 at apparent changes in the pattern of sales.
There were complaints from retailers that rival products were being sold by competitors at prices considerably lower than would be justifiable under market conditions of the time, the judge said.
Source: Irish Independent
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