The Pubs Code (Fees, Costs and Financial Penalties) Regulations 2016

Disputes which are not MRO disputes: fees and costs of arbitration

4.—(1) This regulation applies where a tied pub tenant—

(a) refers a dispute to the Adjudicator under section 48 of SBEEA 2015; or

(b) gives notice under section 50(3)(b) of that Act that the tenant wishes the Adjudicator to be appointed to arbitrate a dispute.

(2) The tied pub tenant must pay a fee of £200 to the Adjudicator at the time the referral is made or the notice is given.

(3) The Adjudicator (or a person appointed by the Adjudicator under section 50(4)(b) of SBEEA 2015) may order the tied pub tenant to pay the pub-owning business’s costs in respect of the arbitration.

(4) The maximum amount the tied pub tenant may be ordered to pay is—

(a) where paragraph (5) applies, the pub-owning business’s full costs of the arbitration;

(b) otherwise, £2,000.

(5) This paragraph applies where the Adjudicator (or a person appointed by the Adjudicator under section 50(4)(b) of SBEEA 2015) considers that—

(a) the tied pub tenant’s referral under section 48 of SBEEA 2015 or the tenant’s notice under section 50(3)(b) of that Act was vexatious; or

(b) the tied pub tenant’s conduct in connection with the arbitration has resulted in an unreasonable increase in the costs of the arbitration.