Enterprise Inns Plc v Palmerston Associates Ltd & Anor

Enterprise Inns Plc v Palmerston Associates Ltd & Anor

The ordinary meaning of the language in the lease and deeds, read in context, establishes that 'Specified Beers' and 'Specified Ciders' refer to types listed in the Appendices and represented by at least one brand on the Price List, creating a tie by type. The regulatory background and commercial purpose do not override the clear language. Contra proferentem does not apply as the language is unambiguous.

Parties
Claimant: Enterprise Inns PLC; First Defendant: Palmerston Associates Limited; Second Defendant: Paul Rigby; Third Defendant: James Younger
Jurisdiction
England and Wales
Judgment Date
30 November 2011
Procedural Posture
Civil / Judgment on Preliminary Issue
Outcome
Declaration granted in favour of the Claimant's interpretation.
Legal Topics
Interpretation of Lease Terms, Exclusive Purchasing Obligations, Beer Tie, Competition Law

Case Brief

Summary, issues, holding and outcome

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Parties

Enterprise Inns PLC

Claimant

Palmerston Associates Limited

First Defendant

Paul Rigby

Second Defendant

James Younger

Third Defendant

Procedural Posture

Civil / Judgment on Preliminary Issue

  1. 1 Proper construction of 'Specified Beers' and 'Specified Ciders' under the lease as varied
  2. 2 Whether the tie operates by type or by brand
  3. 3 Admissibility and relevance of regulatory and legal background to contract interpretation

Ratio Decidendi

The ordinary meaning of the language in the lease and deeds, read in context, establishes that 'Specified Beers' and 'Specified Ciders' refer to types listed in the Appendices and represented by at least one brand on the Price List, creating a tie by type. The regulatory background and commercial purpose do not override the clear language. Contra proferentem does not apply as the language is unambiguous.

Court Disposition

Declaration granted in favour of the Claimant's interpretation.

Orders

  • Preliminary issue answered in accordance with the Claimant's construction of 'Specified Beers' and 'Specified Ciders'.