UNIQUE SUFFERS TIE BREAK BLOW

Related tags Contract Alcoholic beverage High court

By MA Reporters Unique has failed in a High Court move to put an immediate block on a drink wholesaler selling beer to its tenants in breach of their...

By MA Reporters Unique has failed in a High Court move to put an immediate block on a drink wholesaler selling beer to its tenants in breach of their tied contracts. The pub company, which has 4,100 tenants, wanted an "instant" judgment banning drink supplier Licensed Wholesale Company, based in Eccles, Manchester, from supplying beer outside the tie. The company had sought "summary judgment" in the case ­ a judgment in its favour without need for the case to be fully heard. Alternatively, it had sought an interim court order, pending a full hearing of the case, banning Licensed Wholesale from inducing tenants to breach their tie. However, Mr Justice Pumfrey refused both, ruling that there was a "triable issue" in the case and that it was not appropriate to nip the matter in the bud at this stage as sought by Unique. Trade expert Phil Dixon said: "If the High Court ruled against the pub company it would be quite mould breaking ­ but pub companies have been successful in winning injunctions in the past." Unique claimed in court that Licensed Wholesale agreed, in breach of tenants' tie obligations, to supply beers and other beverages to tied houses and that in doing so it acted to procure a breach of contract. The pubco said it sent Licensed Wholesale a list of its houses and the nature of the tie relating to each and in these circumstances Licensed Wholesale was fully aware of the situation. However, dismissing Unique's move, the judge said there was no evidence that Licensed Wholesale had made a particular approach to Unique's tied pubs. He added that it would be inappropriate, under the terms of an interim order to ask Licensed Wholesale to interrogate customers with regard to tied terms to which their premises might be subject. A legal expert said: "It's clear that Unique wants early judgment on this. The issue is likely to go to a full hearing next year although it depends on how hard Unique push and how heavy the calendar of hearings is." A Unique spokesman said: "In a number of cases our wholesalers have been found to be inadvertently soliciting and in such a breach Unique Pub Company has worked with them to introduce procedures which limit the possibility of such a breach occurring. We have been able to deal with the problem. "Licensed Wholesale has been introducing some measures to avoid sales of tied products into our tied pubs. However we believe that further steps are required to make this effective. "No judgment has been given in this case nor does the case alter the successful status of previous judgments given in similar circumstances. We are very confident of our position at trial. In any case our contractual relationship with our tied retailers remains in place.

Related topics Marketing

Property of the week

Follow us

Pub Trade Guides

View more