Regulation 3 MRO disputes: fees, costs etc.

(1)

This regulation applies where—

(a)

a tied pub tenant^f1 or a pub-owning business^f2 refers an MRO dispute to the Adjudicator^f3 (“the referral”) under the Pubs Code etc. Regulations 2016^f4; or

(b)

a tied pub tenant gives notice (“the notice”) under regulation 60(2) of those Regulations that the tenant wishes the Adjudicator to be appointed to arbitrate an MRO dispute.

(2)

The person who makes the referral or gives the notice must pay a fee of £200 to the Adjudicator at the time the referral is made or the notice is given.

(3)

The pub-owning business must pay the reasonable fees and expenses of the Adjudicator (or of the person appointed by the Adjudicator under regulation 58(2)(b) or 60(4)(b) of the Pubs Code etc. Regulations 2016) in respect of the arbitration, except where—

(a)

the tenant made the referral or gave the notice; and

(b)

the Adjudicator (or the person appointed by the Adjudicator under regulation 58(2)(b) or 60(4)(b) of the Pubs Code etc. Regulations 2016) concludes that the referral or notice was vexatious.

(4)

The Adjudicator (or a person appointed by the Adjudicator under regulation 58(2)(b) or 60(4)(b) of the Pubs Code etc. Regulations 2016) may order the tied pub tenant to pay an amount in respect of the pub-owning business’s costs relating to the arbitration.

(5)

The maximum amount the tied pub tenant may be ordered to pay is—

(a)

where paragraph (6) applies, the pub-owning business’s full costs of the arbitration;

(b)

otherwise, £2,000.

(6)

This paragraph applies where the Adjudicator (or a person appointed by the Adjudicator under regulation 58(2)(b) or 60(4)(b) of the Pubs Code etc. Regulations 2016) considers that—

(a)

the referral or the notice was vexatious; or

(b)

the tied pub tenant’s conduct in connection with the arbitration has resulted in an unreasonable increase in the costs of the arbitration.

Annotations

Footnotes

f1: Section 70(1) of SBEEA 2015 defines “tied pub tenant”.
f2: Section 69 of SBEEA 2015 defines “pub-owning business”.
f3: Section 72(1) of SBEEA 2015 defines “the Adjudicator”.
f4: S.I. 2016/XXX.