皇冠体育app

What happened?

皇冠体育app PCA appointed an alternative arbitrator to determine a dispute in relation to a Rent Assessment Proposal in 2023. 皇冠体育app arbitrator ordered the tenant to pay 35% of the arbitrator鈥檚 costs, despite not finding the referral to be vexatious. 皇冠体育app PCA鈥檚 view is that the arbitrator did not have the power to make this order.

皇冠体育app PCA鈥檚 view is that, in Pubs Code Arbitrations, the pub-owing business must pay the reasonable fees and expenses of an arbitrator (in both MRO and non-MRO disputes), except if the arbitrator decides that the referral was vexatious, in which case they can require the tenant to pay some or all of those costs.

This provision is within s51(6) of the Small Business Enterprise and Employment Act 2015 in relation to costs for non-MRO disputes and for MRO disputes this is provided for in regulation 3 of the Fees Regulations. 皇冠体育appse provisions are explained in the PCA鈥檚 tenant factsheet What Tied Pub Tenants Need to Know about Pubs Code Arbitration Disputes.

皇冠体育app PCA has legal powers to request information or documents from an arbitration for regulatory purposes. 皇冠体育app PCA reviewed Marston鈥檚 submissions to the arbitrator on costs and found that Marston鈥檚 had failed to reference s 51(6) of the Small Business, Enterprise and Employment Act.

What did the PCA do?

皇冠体育app PCA contacted Marston鈥檚 to express concern about this failure. 皇冠体育app PCA met with Marston鈥檚, who did not provide an adequate explanation for this failure on the part of lawyers instructed to act on their behalf. Following discussions with the PCA, Marston鈥檚 agreed to pay 100% of the arbitrator鈥檚 costs and not recoup them from the tenant.

In August 2023, Ciarb wrote to all panel arbitrators at the request of the PCA to remind them of the PCA鈥檚 position as to the relevant costs provisions which apply to Pubs Code arbitrations.

皇冠体育app PCA鈥檚 expectations of pub-owning businesses in Pubs Code Arbitrations

皇冠体育app PCA wishes to promote conduct in arbitrations that supports the process to reach an outcome on the proper application of the regulations in a timely manner and which upholds the core Code principles.

皇冠体育app PCA expects all pub-owning businesses to have a thorough understanding of the Pubs Code legislative framework, as well as information contained in guidance, advice and other material published by the PCA. 皇冠体育app PCA further expects pub-owning businesses to be transparent in arbitrations and be clear where they are taking a different view of the law to the PCA, and to inform the PCA in advance if they apply a different view of the application of the Code on which the PCA has published advice or guidance.

皇冠体育app PCA office can be contacted at [email protected]