Punch Partnerships (PTL) Ltd & Anor v Jonalt Ltd [2020] EWHC 1376 (Ch) (01 June 2020)

Punch Partnerships (PTL) Ltd & Anor v Jonalt Ltd [2020] EWHC 1376 (Ch) (01 June 2020)

The arbitrator committed a serious irregularity under s.68 of the Arbitration Act 1996 by reversing the burden of proof without inviting submissions, and exceeded his powers by ordering a 20% keg stocking requirement, both causing substantial injustice to the claimants.

Citation
[2020] EWHC 1376 (Ch)
Parties
First Claimant: Punch Partnerships (PTL) Limited; Second Claimant: Star Pubs & Bars Limited; Defendant: Jonalt Limited
Jurisdiction
England and Wales
Judgment Date
01 June 2020
Procedural Posture
Arbitration Challenge Under Arbitration Act 1996, S.68 / Judgment on Challenge to Arbitral Award
Outcome
Claim allowed in part; award set aside in part and remitted for reconsideration
Legal Topics
Burden of Proof in Arbitration, Arbitrator's Powers Under Statutory Scheme, Serious Irregularity Under Arbitration Act 1996 S.68, Interpretation of Pubs Code and Small Business, Enterprise and Employment Act 2015
Arbitration Commercial Law Landlord and Tenant Burden of Proof in Arbitration Arbitrator's Powers Under Statutory Scheme Serious Irregularity Under Arbitration Act 1996 S.68 Interpretation of Pubs Code and Small Business, Enterprise and Employment Act 2015

Case Brief

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Parties

Punch Partnerships (PTL) Limited

First Claimant

Star Pubs & Bars Limited

Second Claimant

Jonalt Limited

Defendant

Procedural Posture

Arbitration Challenge Under Arbitration Act 1996, S.68 / Judgment on Challenge to Arbitral Award

Legal Issues

  1. 1 Whether the arbitrator committed a serious irregularity by reversing the burden of proof without inviting submissions from the parties
  2. 2 Whether the arbitrator exceeded his powers by ordering a 20% keg stocking requirement in the MRO lease

Ratio Decidendi

The arbitrator committed a serious irregularity under s.68 of the Arbitration Act 1996 by reversing the burden of proof without inviting submissions, and exceeded his powers by ordering a 20% keg stocking requirement, both causing substantial injustice to the claimants.

Court Disposition

Claim allowed in part; award set aside in part and remitted for reconsideration

Orders

  • The requirement for a 20% keg stocking provision in the award is set aside.
  • The findings of unreasonableness and related parts of the award are remitted to the arbitrator for reconsideration in light of the judgment.