BUSINESS AND PROPERTY COURTS IN LEEDS
COMPETITION LIST (ChD)
The Courthouse 1 Oxford Row Leeds LS1 3BG |
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B e f o r e :
B E T W E E N :
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UNIQUE PUB PROPERTIES LTD | Claimant | |
- and - | ||
(1) MICHAEL JAMES RODDY | ||
(2) BRENDA RODDY | ||
(3) REBECCA RODDY | Defendants |
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THE FIRST DEFENDANT appeared in Person.
THE SECOND AND THIRD DEFENDANTS were not present and were not represented.
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Crown Copyright ©
MR JUSTICE BARLING:
Introduction
The background
"17.1 This lease contains obligations upon you to buy goods exclusively from us, which are intended to comply with article 101 of the Treaty of Rome, and the conditions contained in EEC Regulation (EC) 330/2010.
17.2: We both agree that the rent fairly represents the rent which would be expected to be paid for this lease in the open market, taking into account your obligations to purchase goods from us."
"18.1: You must buy from us (or our nominated supplier) all tied drinks that you wish to sell as part of the business, and you must not bring onto the property for any reason any tied drinks that have not been supplied by us or our nominated supplier.
18.2: The prices payable by you for the tied drinks will be the prices and any applicable discount set out in our price list."
The procedural background
The issues for determination
The legal principles
"The defendants shall (1.1) buy from the claimant (or their nominated supplier) all tied drinks that they wish to sell as part of the business, and do not bring onto the property for any reason any tied drinks that have not been supplied by the claimant or their nominated supplier."
"Thirdly, it is legitimate where a mandatory injunction is sought, to consider whether the court does feel a high degree of assurance that the plaintiff will be able to establish his right at trial. That is because the greater the degree of assurance the plaintiff will ultimately establish his right, the less will be the risk of injustice if the injunction is granted. But finally, even where the court is unable to feel any high degree of assurance that the plaintiff will establish his right, there may still be circumstances in which it is appropriate to grant a mandatory injunction at an interlocutory stage. Those circumstances will exist where the risk of injustice, if this injunction is refused, sufficiently outweigh the risk of injustice if it is granted."
"Serious issue to be tried"
"Subject to section 3, agreements between undertakings, decisions by associations of undertakings, or concerted practices, which (a) may affect trade within the United Kingdom, and (b) have as their object or effect the prevention, restriction or distortion of competition within the United Kingdom are prohibited, unless they are exempt in accordance with the provisions of this Part."
"Subsection (1) applies in particular to agreements, decisions or practices which … (d) apply dissimilar conditions to equivalent transactions with other trading parties, thereby placing them at a competitive disadvantage".
"Any agreement or decision which is prohibited by subsection (1) is void".
"A beer supply agreement is prohibited by Article 85(1) of the EEC Treaty if two cumulative conditions are met. The first is that, having regard to the economic and legal context of the agreement at issue, it is difficult for competitors who could enter the market or increase their market share to gain access to the national market for the distribution of beer in premises for the sale and consumption of drinks. The fact that, in that market, the agreement in issue is one of a number of similar agreements having a cumulative effect on competition constitutes only one factor amongst others in assessing whether access to that market is indeed difficult.
The second condition is that the agreement in question must make a significant contribution to the sealing-off effect brought about by the totality of those agreements in their economic and legal context. The extent of the contribution made by the individual agreement depends on the position of the contracting parties in the relevant market and on the duration of the agreement."
Adequacy of a remedy in damages
Other factors
Conclusion
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