BII offers pubs a mediation 'lifeline'
A former pubco tenant has hailed the BII's (British Institute of Innkeeping's) new mediation service as a "lifeline" after he clawed back £34,000 from his pub company following a long-running dispute.
The BII will now officially launch its mediation service following a successful trial over four major cases — two involving Marston's, one Enterprise Inns and one Greene King. The service marks another milestone on the BII's path to becoming the industry's policeman — a challenge laid down by the Business, Innovation & Skills Committee inquiry into pubco power.
Mediation now forms a third tier of dispute resolution for the BII, below the Pubs Independent Rent Review Scheme (PIRRS) and code of practice breaches. It is aimed at resolving long-running and "messy" disputes, falling outside codes of practice, that may end up in court, costing both sides large amounts of money.
Tenants will be able to suggest mediation as a way forward to their pubco.
Paul Williams, ex-Marston's tenant at the Ship in Solva, Wales, praised the BII's intervention to help him resolve a dispute over the valuation for fixtures and fittings. He ended up with a cheque for £34,000 from the pubco after surrendering the lease in January.
"Without the BII and without Phil Dixon we would have got nowhere," he said. "We were the lucky ones and got some money back. It is a great support mechanism."
Viable relationship
The BII has previously offered mediation on a more informal basis for members, but has now extended it for non-members.
Although no direct costs have yet been set, tenants are expected to be asked to pay around £250 for the service, with pubcos stumping up around £500 — although it is hoped pubcos will offer to pay the full amount in most cases.
"There are many disputes where there is still a viable business and a professional relationship to be had for both sides," said BII chief executive Neil Robertson, who was personally involved in the mediation for a high-profile case involving an Enterprise tenant.
"It is not arbitration and it is not expert determination — we are not saying don't go to court, but we are saying this is a route to try first."
Cynicism
At the end, a formal document is drawn up by the BII stating both sides agree on a resolution, but the BII involvement ends there and it does not police the outcome.
Simon Clarke, a chartered surveyor, Fair Pint member and licensee at the Eagle Ale House in Battersea, helped out the Enterprise tenant in the mediation.
"Anything that gets a resolution is good," he said. "But I don't know of any other commercial sector that needs mediation. It is like having a leaky roof and putting a bucket under it, instead of fixing it.
"I also have to ask if the pub companies are only playing ball because they will soon be before the select committee again?"
