A former pub landlord's landmark legal victory over a pub chain accused of anti-competitive price-fixing has been overturned by the House of Lords.

Two years ago, in a test case decision that could have cost pub chain Inntrepreneur more than £100 million, the Court of Appeal awarded Bernie Crehan, of Eastbourne, £250,000 damages.

The appeal court ruled that the beer tie in his lease - which he said drove him out of business because he could not compete with "free" houses - broke European competition law.

That judgment, on which about 600 similar claims against Inntrepreneur depended, has now been overruled by five Law Lords after they allowed an appeal by Inntrepreneur.

Mr Crehan launched his test case more than 12 years ago. He had given up the Phoenix and the Cock Inn in Staines, Surrey, because his lease required him to buy his beer from Courage at full price, whereas a nearby free house could buy the same beer at an £80 a barrel discount.

However, Lords Bingham, Nicholls, Hoffman, Rodger and Walker held that the Court of Appeal was wrong to decide that the High Court judge who originally found against Mr Crehan was in error by refusing to follow earlier rulings by the European Commission. They added the appeal court was wrong to reverse his decision.

Thursday, July 20, 2006