Punch in upward-only rent dispute
Punch has denied accusations that it enforced a no-rent reduction clause at a Northamptonshire pub.
County Court documents from a case involving licensee George Scott, seen by the MA this week, show Punch's representative Mr Green saying rent at the Eastcote Arms, near Northampton "cannot reduce".
Green underlined to the court that Scott's lease agreement allowed for an "upwards-only rent review" several times in the court proceedings.
At the hearing at Northampton Crown Court in November 2009, Green also argued the pubco's Retail Charter (code of practice) was simply a "consumer-friendly document", which has no "contractual effect" when it comes to rent reviews. The hearing was into Punch's attempt to forfeit Scott's lease for non-payment of rent.
It follows a long-running dispute between the lessee and pubco. In February 2009 Scott stopped paying rent and now owes around £37,000 in arrears. He claims he was misrepresented when he signed his original lease, having never been provided with the business's accounts.
He also claims the pub was over-rented and he was forced to sign a rent review agreement when he was ill.
Following the hearing, Punch was awarded damages of £42,000 and possession of the pub. Scott is appealing the decision.
Punch has since said it has not sought to enforce a no-rent reduction clause.
The pubco also made the point that Scott's rent review was handled in 2005, before the BISC/BEC inquiry. Its statement said: "Punch remains committed to building open and honest relationships with our partners. Our business model continues to evolve. We have already made a number of significant and positive changes."
