MRO must be with a Deed of Variation – Arbitration award

Another groundbreaking MRO victory for tied tenants represented by the Pubs Advisory Service.

The Pubs Code Adjudicator arbitration ruled that EI Group (Stonegate) MUST issue a Deed of Variation to a tied tenant who was trying to go free of tie and, that the pub companies new lease was in breach of the pub’s code as it made the tenant worse off.

The case was another nail in the coffin of Pub Companies consistently proposing new agreements to sever the beer tie at MRO. PAS who represented the tenant made the firm and lawful argument that this matter could be done easier and cheaper using a common and widely used method of a deed of variation (DOV).

The Arbitrator ruled in favour of PAS/Tied Tenant:

.…..A standard template lease to be applied by the POB is potentially a burdensome position for the tenant with limited
strength and negotiating support and consequently could result in unfairness to the tenant…….

……I find for the Claimant that the MRO-compliant tenancy is
most fairly and appropriately achieved by a DOV and not by a NL (New Lease) and
satisfied that the DOV will comply with the provisions of sections 43(4)(iii)
and 43(5)(b) of the SBE&E Act15.”

Download the award here DOV_MRO_Award

If you need an award-winning pubs expert helping your business then please contact us HERE