Bernard Crehan and (1) Inntrepreneur Pub Company (CPC) (2) Brewman Group

Instructed by Charles Russell Solicitors, Howard was Expert Valuation Witness for Bernard Crehan in this complicated case, which necessitated the capital and rental valuation of two public houses on a tied and free of tie basis over a 12 year period.

The case focused on the balance between rent and other lease terms, particularly the terms of any tie. (e.g. the obligation on the tenant to purchase specified beers from the landlord at full list price). The valuers' evidence assisted the judges who had to consider quantum and the capital value of the leases.

Forensic accountants were asked to consider what the income and profitability of the businesses might have been. This in turn required the valuers' assessment of the rents on tied and free of tie basis at the cyclical five-yearly rent reviews.

The case has been through the High Court, The Court of Appeal and will soon be put before the House of Lords.

A summary of this well publicised case follows. The evidence presented by Howard Day is referred to most frequently in the Quantum sections of the High Court Judgment (begins at paragraph 265) and that of the Court of Appeal (begins at paragraph 172).

For the full High Court and Court of Appeal Judgments visit the following links:

Crehan v Inntrepreneur Pub Company (CPC) & Anor [2003] EWHC 1510 (Ch)

Crehan v Inntrepreneur Pub Company CPC [2004] EWCA Civ 637

Crehan v Inntrepreneur Pub Company (CPC) and others [2006] UKHL 38

Case Summary

Mr Crehan is a publican. In July 1991, pursuant to agreements for leases, he took occupation of two pubs which Inntrepreneur owned: The Cock Inn and The Phoenix; they are situated close to each other in Staines, a town on the Thames a little to the west of London.

The leases annexed to the agreements contained beer ties whereby Mr Crehan was bound to purchase most of his beer from Courage at the full prices in Courage's price lists from time to time. Tenants or owners of free houses (as opposed to tied houses like The Cock Inn and The Phoenix) were able to purchase their supplies of beer, whether from Courage or from other suppliers, at prices that were discounted heavily below the listed prices, which Mr Crehan was obliged to pay.

Mr Crehan's business failed and he became involved in protracted litigation with Courage and with Inntrepreneur. The case finally came to trial and was heard over a total of 29 days. It involved substantial issues of EC law revolving around whether the beer ties in Inntrepreneur leases infringed article 81 of the EC Treaty. It had already been to the CJEC.

The effect of the CJEC's decision, announced in September 2001 was that Mr Crehan might have a claim for damages against Inntrepreneur, but that there were substantial questions which needed to be decided by the national courts.

The case has now been heard by The High Court, The Court of Appeal and the House of Lords (please see the listings above)