DUBLIN: Tesco has said it will defend a lawsuit taken by one of its former suppliers, a potato trader, seeking €8.5m plus unspecified damages.
Supplier Paul Sweeney & Company, a Dublin business which says it supplied Tesco with potatoes between 1998 and 2008, will seek to have the case fast-tracked through the Commercial Court tomorrow.
The lawsuit concerns an alleged breach of contract by Tesco regarding the supply of potatoes, one of its best-selling vegetables.
The potato supplier, which is currently not trading, is based in Newcastle in Dublin and owned by local businessman Paul Sweeney (53).
His company alleges it spent millions between 1998 and 2006 on investing in facilities based on an agreement that it would supply half of Tesco Ireland’s potatoes. The agreement was not upheld, it argues, and was terminated without reasonable notice.
Paul Sweeney & Company is being represented by Dublin solicitor firm Lawlor Partners, junior counsel Bonnie Hickey and senior counsel Richard Kean – the brother of well-known celebrity solicitor Gerald Kean. Tesco is represented by Dublin ‘big five’ law firm A&L Goodbody.
“This is a long-standing case for damages arising out of the termination of a supplier relationship which Tesco Ireland will defend. As proceedings are ongoing, we would not comment further at this time,” said a spokeswoman for Tesco.
As Ireland’s joint largest supermarket chain – like SuperValu, it controls a quarter of the market – Tesco is one of the most important buyers of Irish foods.
Tesco Ireland employs over 15,000 people and operates around 140 grocery stores and 21 petrol stations.
There is no suggestion that the case appearing before the courts tomorrow relates to accounting problems with how Tesco handled supplier payments, which led to its massive £263m (€358m) overstatement of profits uncovered last year.
