Greene King fighting magistrate's costs order

Thousands of UK pubs could be shuttered for good if a local magistrate's decision to strike out an award for licensing appeal costs sets a trend for the industry.

Greene King, embroiled in a media row after four Bury-St-Edmunds residents objected to one of its pubs, the Dog & Partridge, opening longer, argues the decision not to award it costs at appeal creates "a real threat to the thousands of community pubs across the country".

The fears arose after the local council's licensing committee threw out objections by four residents who also lost a subsequent appeal but were boosted by a magistrate who decided not to award costs to the Suffolk brewer "because it is a big company and it can afford it".

Mark Angela, head of Greene King's managed pubs division,said he wanted the industry to be aware of the issues at stake and maintained that in challenging the magistrate's decision in the High Court the company was acting out of principle, not economics.

"We made concessions from the outset. We set aside 1am closing, live music and entertainment. We're not challenging the four people who brought the appeal and we're not going after them for the £29,000 in costs, rather we want what they can realistically can afford, a token amount. But we are still challenging the magistrate's decision not to award costs."

Greene King wanted to "establish the principle that people should have to contribute to the cost of cases being heard a second time round", he added.

When the residents appealed the original decision of the licensing committee to grant the pub a licence they demanded door staff, plastic glasses and CCTV should be used at the pub.

"The pub has never had any issues with the police nor have any complaints been levied against it with regards to its trading," he said.

"They went ahead with the appeal in the full knowledge that if it was rejected…there could be cost implications for them."

Mark Hastings of the British Beer & Pub Association said the industry had worked hard with local communities on trading hours and the Greene King case represented a point of principle. "Vexatious individuals should not be able to take legal action free of the financial risk of doing so," he said.

Nick Bish of the Association of Licensed Multiple retailers said the industry must deal with such cases sensitively "to avoid the accusation of bully-boy tactics", but smaller, less well-resourced multiple operators could lose out to harassment from vociferous residents.