Enterprise: 'Tenants being misled in lease disputes'
This comes after the pub company secured its second High Court victory in as many weeks over a tenant on an issue related to the tie.
Judge Morgan ruled in favour of Enterprise in its case against Palmerston Associates, tenant at the Palmerston pub in Dulwich, south London.
The defendant - Palmerston Associates - was accused by Enterprise of interpreting the lease in a way that enabled it to buy outside of the tie.
Enterprise said: “In so far as misinformed and irresponsible individuals, action groups or unions advise tied publicans to embark on a collision course with their landlord by breaching covenants, the result can often be unecessary, costly and unsuccessful litigation.”
At the centre of the case with Palmerston Associates was “the language used by both parties” in reference to provisions on “specified beers” and “specified ciders” in the lease.
In its submission to the High Court, Enterprise stated that the Terms of Trading in the 2001 deed created a “tie by type” rather than a “tie by brand”.
Palmerston Associates contended that Enterprise’s interpretation of the tie was “extremely wide”. It added: “If the Company was offering to sell one brand of a particular category of beer, then the Tenant was not free to buy any other brand of that category of beer from another supplier.”
In his judgement, Judge Martin found in favour of Enterprise, and said: “[The] single most important matter in this case is the language used by the parties. I consider that that language fairly read has the effect contended for by the Claimant [Enterprise].”
The pub company received a favourable judgement in long-running proceedings against Fair Pint founder Karl Harrison’s company Onifas last week, following a dispute over beer flow monitoring equipment at the Bedford pub, Balham.
- The full script of the judgement and statements from both parties will follow shortly.
