Punch Partnerships (PTL) Ltd & Anor v The Highwayman Hotel (Kidlington) Ltd

Punch Partnerships (PTL) Ltd & Anor v The Highwayman Hotel (Kidlington) Ltd

The arbitrator did not err in law in finding the lease term unreasonable nor breach procedural fairness by using information acquired as regulator, but exceeded her statutory powers by ordering the landlords to offer a lease of at least five years, as the statutory framework does not confer such power.

Parties
Claimant: Punch Partnerships (PTL) Limited; Claimant: Star Pubs & Bars Limited; Defendant: The Highwayman Hotel (Kidlington) Limited; Intervenor: The Office of the Pubs Code Adjudicator
Jurisdiction
England and Wales
Judgment Date
24 March 2020
Procedural Posture
Arbitration Challenge / Judgment
Outcome
First and second challenges dismissed; third challenge allowed; award varied by setting aside paragraphs 61 and 62 under section 68(3) Arbitration Act 1996.
Legal Topics
Arbitrator's Powers, Confidentiality, Statutory Regime, Reasonableness of Lease Terms, Regulatory Vs Arbitral Functions
Arbitration Statutory Interpretation Property Law Arbitrator's Powers Confidentiality Statutory Regime Reasonableness of Lease Terms Regulatory Vs Arbitral Functions

Case Brief

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Parties

Punch Partnerships (PTL) Limited

Claimant

Star Pubs & Bars Limited

Claimant

The Highwayman Hotel (Kidlington) Limited

Defendant

The Office of the Pubs Code Adjudicator

Intervenor

Procedural Posture

Arbitration Challenge / Judgment

Legal Issues

  1. 1 Whether the arbitrator erred in law by finding the proposed lease term unreasonable
  2. 2 Whether the arbitrator unlawfully relied on information received as regulator and breached duty to act fairly and impartially
  3. 3 Whether the arbitrator exceeded her powers by ordering the landlords to offer a lease of a particular length

Ratio Decidendi

The arbitrator did not err in law in finding the lease term unreasonable nor breach procedural fairness by using information acquired as regulator, but exceeded her statutory powers by ordering the landlords to offer a lease of at least five years, as the statutory framework does not confer such power.

Court Disposition

First and second challenges dismissed; third challenge allowed; award varied by setting aside paragraphs 61 and 62 under section 68(3) Arbitration Act 1996.

Orders

  • Ruling in paragraphs 61 and 62 of the award set aside under section 68(3) Arbitration Act 1996.
  • Counsel to prepare draft order and make consequential applications within 7 days.