Punch capitulates over Six Bells rent wrangle

by John Harrington

Punch Taverns has agreed to pay a couple's £20,000 legal bill after capitulating in a two-year rent dispute.

The company conceded licensees Keith and Tanya Dunne should pay just £2,500 more a year in rent rather than the £8,500 it had been demanding for the past two years.

Punch opted for a settlement with the Dunnes rather than continue with a rent tribunal at Reading county court that had already lasted two days.

The company agreed to increase rent at the Six Bells in Kidlington, Oxfordshire, from £21,561 to £24,000.

Two years ago, when the 10-year lease came up for renewal, Punch told the Dunnes their rent should rise to £30,000, prompting the couple to seek a tribunal.

Punch has agreed to pay the couple's legal costs, which stood at around £20,000 up to the first day of the hearing.

The couple had argued at the tribunal they were being penalised for their success and hard work in turning the pub's trade around.

Benedict Sefi, representing the Dunnes, told the court the lessees had increased turnover at the pub from £150,000 in 1997, when they had the lease assigned to them, to an average of £320,000 a year.

He said they installed a children's play area, converted a disused function room, refurbished the kitchen and introduced food all at their own expense.

Keith Dunne told the Morning Advertiser: 'The increase in trade was 100% down to us. Punch had no investment in the property and that was our choice.

'Our barrister said they produced no case in court for the rent to go up, other than greed.

He said they wanted the rent to be set at £22,000. However, they settled on Punch's offer of £24,000 because they wanted to avoid extra days in court and the possibility of being saddled with large legal costs.

Dunne agreed he was 'satisfied with the outcome but added: 'It's just a shame it took two years to reach a situation we could have got to in a month by talking to Punch about it.

A Punch spokesman said in the past three years the pubco has agreed 'several thousand rent negotiations, with only the Dunne case and two others referred to a tribunal.

'Our decision to settle out of court is based on the circumstances surrounding the pub, taking into account Keith and Tanya's personal contribution to the development of the business, he added.

'It is unfortunate this case proceeded to court as Punch, wherever possible, attempts to reach an amicable settlement with all its retailers.