Recouping closure losses

Related tags Renting Lease Landlord

QWhen we took over this lease, the premises was in a bad state in certain parts and despite numerous requests, the brewery did nothing. All of a...

QWhen we took over this lease, the premises was in a bad state in certain parts and despite numerous requests, the brewery did nothing. All of a sudden in November the brewery said it was starting work. It gave us two weeks' notice to close the pub, at the most important time of the year. It has remitted the rent, but what about the lost trade and profit? We have re-opened but we do not know if we will make up the trade again

AIt is very difficult for me from a distance to advise you on what is normally a negotiating matter between landlord and tenant. It is custom and practice in the licensed trade for insurance to be included in the terms and conditions of the lease, which will include both buildings insurance for the landlord, paid by the lessee, and insurance for business interruption due to the unfitness of the premises.

The insurers will assess the loss to you of the enforced closure, including the liability to pay rent during that period, and will compensate you for your losses in this respect.

Some business leases do contain a provision for temporary suspension of rent when the building is unfit for use, but this is a matter for negotiation between the parties and will still be covered by insurance.

Who should pay for ramp?

QI am negotiating to take over the lease of a stone-built pub and have noticed a problem between the bar and toilets that could cause problems over disabled access. There is a shallow step down and step up in the corridor, which we could bridge with a simple wooden ramp. The brewery refuses to pay for this. Who is responsible?

AIt certainly is important to consider the needs of disabled customers and the Act requires you to undertake such alterations to your premises as are reasonable.

However, it is debatable whether the alteration you suggest is really the responsibility of the landlord, not being structural, and you would be the "service provider" at the establishment in question.

It is clear that there are a number of pubs and other buildings that by their construction are not convenient for the needs of disabled people and the Act does not require every owner or lessee to make major changes to the fabric. However, this is not a major or costly solution to complywith the disability discrimination legislation and I think you could continue to negotiate with the landlord, perhaps to share the cost.

Bringing drink into pub

QIt was brought to my attention that a customer who had bought a beer from us was also drinking from a spirits bottle that he had brought in, presumably from the local off-licence. What is the law on this, and can I stop it happening?

AIt depends on the circumstances. There is no technical legal prohibition on bringing liquor, which has been purchased elsewhere for off-consumption, into a pub. It is taking the liquor from the pub, or consuming it there, that presents the problems.

Clearly, you are not going to take kindly to "foreign" stock on your premises, unless you know that the customer is going to his home, is not consuming the products and has merely called in for a drink with you on his way.

You are certainly entitled to prevent persons drinking such liquor on your premises, and you are entitled to insist that all drinks for on-consumption must be purchased from you as the licensee.

There is also the problem of drunkenness, where persons buy beer from you and proceed to drink spirits at the same time from their own bottle. Where this happens, you are clearly within your rights to ask such persons to leave immediately.

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