Penalty Clause Doctrine - Disproportionate Charge

Irish contract law applies the penalty clause doctrine. A liquidated damages clause is enforceable only if it represents a genuine pre-estimate of loss; otherwise unenforceable (Dunlop v. New Garage [1915] AC 79; O'Donnell v. Truck and Machinery Sales Ltd [1998] 4 IR 191). A EUR 100 'parking charge' for a 5-minute overstay in a free car park is not a genuine pre-estimate. ParkingEye v. Beavis is persuasive only - not binding in Ireland.

Legal basis

Dunlop Pneumatic Tyre Co Ltd v. New Garage [1915] AC 79; O'Donnell v. Truck and Machinery Sales Ltd [1998] 4 IR 191.

How to identify this in your case

Use against private parking 'charges' bearing no relationship to actual loss. Particularly powerful where parking was free.

Sample appeal wording

Before you send this

Deadline. A late submission can be turned down without your argument being read. Check your notice for the deadline and how it is counted.
Paying may end it. Paying can count as accepting the notice and can close a challenge already under way. Part-paying or acknowledging an old debt can also revive a time limit that had expired.
The amount can change. Check what happens to the sum if you challenge — it may be held, re-offered lower, or keep rising, and fees or enforcement can continue meanwhile.
Use the official route. Use the method, recipient and form your notice specifies, with any reference, evidence and signature it asks for. Sent elsewhere, it may not count.
Only say what is true. Do not copy any statement of fact unless it is true for you, and check the legal point still applies. Delete what does not fit. It may be treated as your statement.
Careful what you volunteer. Avoid unnecessary admissions — naming the driver or accepting responsibility can remove arguments. But answer anything you are legally required to answer, and do include the evidence your ground needs.
Keep the record. Keep what you sent, the attachments, any receipt, and the reply. Note the next deadline.

Sample wording to adapt and send yourself — it may not fit your notice or the stage you are at. Replace the bracketed prompts with your own details; leave any case citation as it is.

To: [Operator] Re: PCN [NUMBER] - EUR [AMOUNT] The charge is an unenforceable penalty under Irish law. 1. A liquidated damages clause is enforceable only if it represents a genuine pre-estimate of loss (Dunlop v. New Garage [1915] AC 79; O'Donnell v. Truck and Machinery Sales Ltd [1998] 4 IR 191). 2. The car park at [LOCATION] is [free / charged at EUR X per hour]. Operator's 'loss' from a [X-minute] overstay cannot rationally be quantified at EUR [AMOUNT]. 3. ParkingEye Ltd v. Beavis [2015] UKSC 67 is persuasive in the UK but not binding in Ireland. The Supreme Court of Ireland has not adopted the 'commercial justification' approach. The traditional Dunlop test applies. 4. The charge is therefore an unenforceable penalty. I dispute the charge. The matter will be reported to the CCPC. Yours faithfully, [NAME]

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Sources

Dunlop Pneumatic Tyre Co Ltd v. New Garage [1915] AC 79
O'Donnell v. Truck and Machinery Sales Ltd [1998] 4 IR 191
ParkingEye Ltd v Beavis [2015] UKSC 67 — reported on Find Case Law under the joined appeal Cavendish Square Holding BV v Talal El Makdessi:
https://caselaw.nationalarchives.gov.uk/uksc/2015/67
Contains information licensed under the Open Justice - Licence v2.0.