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

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]

Replace [PARKING DATE], [NtK DATE] etc. with your own dates before sending.

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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