The review, in relation to a rent assessment proposal launched against Marston’s two years ago, found the pubco failed to identify relevant costs provisions in its submissions, under s51(6) of the Small Business, Enterprise and Employment Act.
In 2023, the PCA appointed an alternative arbitrator, which ordered the tenant to pay 35% of the arbitrator’s costs, despite not finding the referral to be vexatious.
Adequate explanation
The PCA asserted the arbitrator did not have the power to make this order, adding pub-owing business must pay the reasonable fees and expenses of an arbitrator (in both MRO and non-MRO disputes) under the code.
After a meeting with Marston’s to express concern about this failure, the PCA claimed the pubco did not provide an “adequate explanation” for the oversight on the part of lawyers instructed to act on their behalf.
Following the discussions, Marston’s agreed to pay 100% of the arbitrator’s costs and not recoup them from the tenant.
Swiftly and amicably
A spokesperson for Marston’s spokesperson told The Morning Advertiser (The MA): “This relates to an arbitration in May 2023 and was a procedural issue, it was resolved swiftly and amicably.”
The PCA stated it expected all pub-owning businesses to have a thorough understanding of the Pubs Code legislative framework.
In addition, the PCA said pubcos must be transparent in arbitrations and inform the PCA in advance if they apply a different view of the application of the code.
Last week, the PCA further urged compliance after Star was found to be in breach of regulation 46 of the code, which states pubcos must provide tied tenants with information about premises insurance where it intends to charge the tenant in respect of the premium.
