Enterprise is pleased to confirm that today His Honour Judge Morgan, sitting in the High Court in London, issued judgment in favour of Enterprise in legal proceedings against Palmerston Associates Limited, its tenant at the Lord Palmerston Public House in Dulwich. This judgment came in proceedings where our tenant, despite clear purchasing obligations and having entered into the lease freely, sought to interpret the tie in a way so as to impose a limitation which simply was not credible, but served the tenant’s own agenda.
Palmerston Associates chose to breach the purchasing obligations and to damage and disconnect flow monitoring equipment installed at the premises. Legal proceedings were invited and, while it is unfortunate that the matter could not be settled without judicial intervention, Enterprise was obliged to defend its position on the tie.
Palmerston Associates’ defence and counterclaims were entirely unsuccessful. Having heard submissions from leading counsel for both parties, Mr Justice Morgan was satisfied that Enterprise’s position was entirely correct. Following the decision last week in the case concerning Mr Karl Harrison’s company and the Bedford Public House at Balham the balance of the proceedings in this case concerning flow monitoring equipment was also disposed of by way of an injunction to restrain interference with the equipment.
It is regrettable that we have had to resolve these matters in court. Enterprise was content that the position adopted by the publican was ill-advised and misconceived. This was another extraordinarily expensive and unsuccessful legal excursion which was entirely unnecessary. Costs were awarded in favour of Enterprise, and Palmerston Associates Limited has been given 14 days in which to make a significant payment in relation to those, as well as having to meet their own substantial legal costs.
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 unnecessary, costly and unsuccessful litigation.
From time to time, there can be disagreements in the landlord and tenant relationship, but in the majority of cases a sensible and constructive dialogue and a basic understanding of legal principles means both sides can reach a resolution at local level and in accordance with our Code of Practice.
Ted Tuppen, Chief Executive, commented:
“We are obviously pleased with this result. The challenge made in this case was important for the industry to have resolved quickly and we are pleased that the court timetable allowed that to happen. We are delighted that the Judge found entirely in our favour.”