Crehan case comes to an unexpected halt

The landmark case of Bernie Crehan v Inntrepreneur, which was being heard in the House of Lords, has come to an unexpected halt.

The Lords had heard submissions from both parties involved in the case but halted the hearing by saying they did not want to hear submissions on the damages that could be paid.

Rupert Croft, the lawyer representing Mr Crehan, said there could be two reasons for the Lords not wishing to hear submissions on damages.

Either the Lords are intending to refer the case to the European Court of Justice (ECJ) or they're planning to find in favour of Inntrepreneur, in which case the damages are irrelevant, he said.

"We hope and believe that a reference to the ECJ is the more likely reason," Mr Croft added. If the Lords were to find in favour of Inntrepreneur, he said, it would almost certainly be the end of the case.

Although Mr Croft believes Mr Crehan's chances of success at the ECJ are good, referring the case to Europe could delay a decision by as much as two years.

If the Lords are planning to refer the case to the ECJ they should notify everyone concerned by the end of July. If they decide to continue the case themselves a judgment is likely be received in the autumn.

Mr Crehan's case, which has been running since 1993, centres on the beer tie imposed by Inntrepreneur in the late 1980s.

Mr Crehan says the terms of his tie were so restrictive they made it impossible for him to run his pubs competitively, which led to the collapse of his business.

The case is being closely watched by another 400 former Inntrepreneur tenants who could go ahead with similar claims if Mr Crehan is successful.