Updated: Licensee loses case against Enterprise over I-Draught

30-Jul-2012 - Last updated on 01-Aug-2012 at 08:09 GMT

Daniel Dempsey, licensee of the Green Tavern in Croydon, has lost a high court case against Enterprise Inns over the right to install I-Draught beer monitoring equipment in his pub.

Dempsey, who is a multiple pub operator of Broad Green Tavern Ltd (BGLT), had pursued the case after refusing entry to Enterprise to install the I-Draught equipment at the premises. His lease was granted in March 1999 to BGLT to Unique Pub Company predecessor Inntrepreneur. Enterprise Inns now own Unique.

Costs were awarded in favour of Enterprise, and an order has been issued for a payment from the licensee to be made within 14 days. Enterprise requested costs of £41.5K but the judge granted £20K on account pending further assessment. This is in addition to his own legal costs. However, reports claiming his costs could hit £100K have been refuted by insiders.

In the judgement Mr Dempsey’s stated position was that he had no objection to the installation of flow monitoring eqipment per se. His objection was to the installation of the I-Draught system, because he considered it to be inaccurate.

In the ruling Judge Warren said that there was some dispute between the parties on the accuracy of the system but said: “Even if BGTL and Mr Dempsey are right on this detail, I do not consider that Unique is acting arbitrarily, capriciously or unreasonably in what it is proposing to do.

“This position might be different if the equipment was, on any view wildly inaccurate and not fit for purpose for which Unique wish to install it, it is not necessary to decide on that point.”

In conclusion the judge added: “I accept that the issues are of a much wider concern than to the parties to this action. But the wider concern does not justify putting Unique to the expense of a trial.”

Enterprise chief executive Ted Tuppen said: “Regrettably, this was another expensive and unnecessary legal excursion. Publicans who do not breach the purchasing obligations in agreements freely entered into have nothing to fear from technology installed at thousands of public houses in the UK where there is a clear and express agreement that the equipment selected by Enterprise can be installed.

"In light of the reasoned judgment in this case, and previous cases, this should now draw a line under the issue. Further proceedings would be a distraction from focussing on the real issues facing the pub industry in terms of taxation, red tape and supermarket pricing.”

Dempsey is currently out the country and unavailable for comment.