The long-running court action by ex-Inntrepreneur lessee Bernie Crehan is set to move to the Court of Appeal after both sides claimed a partial victory from the latest court judgement.
Crucially for the hundreds of former Inntrepreneur lessees waiting for the case to be decided, High Court judge Mr Justice Park has ruled that the terms of the beer tie in Mr Crehan's lease caused his business to fail.
However, the judge also took the view that Inntrepreneur's beer ties did not breach European competition laws, but gave Mr Crehan's lawyers permission to refer this key point to the Court of Appeal.
The European Court of Justice ruled in September 2001 that the Inntrepreneur lessees had a right to claim damages through the UK courts. If the Court of Appeal allows Mr Crehan to recover the estimated £1m cost resulting from the failure of his business, it would open the way for other former Inntrepreneur lessees to claim.
Rupert Croft, litigation partner at Mr Crehan's lawyers Charles Russell, said the judge had only heard partial evidence on the complex competition issue, which will be more fully considered by the Court of Appeal.
Mr Croft added: 'Mr Crehan was delighted with the rest of the judgment. The Judge found that the beer tie in Mr Crehan's lease caused his business to fail and that his resulting loss was over £1 million. We will be asking the Court of Appeal to allow Mr Crehan to recover this sum from Inntrepreneur."
Inntrepreneur, which was bought by Nomura in 1997 and has transferred most of its pubs to other Nomura companies, welcomed the High Court ruling. In a statement it said it "regrets the long and costly litigation which resulted from this claim and believes it appropriate that both this litigation, and any related legal actions, are now ended".
Related articles:
OFT says no to beer tie probe (3 April 2003)
Crehan v Inntrepreneur case - verdict by summer (27 March 2003)
Licensees show support for battling Crehan (27 February 2003)
Inntrepreneur licensees may be too late to follow Crehan's lead (20 February 2003)
Licensee's dispute with Inntrepreneur reaches High Court (13 February 2003)
Case against Inntrepreneur beer tie gathers pace (18 April 2002)
Nomura faces huge bill as publicans are urged to claim damages (20 March 2002)
Court of Appeal gives go-ahead for claims against Inntrepreneur (15 November 2001)
Legal help offered for licensees to take action against Inntrepreneur (15 October 2001)