The Pubs Code Adjudicator (PCA) and Star Pubs & Bars Ltd have reached a settlement which brings to an end litigation between them in the High Court.
Star had challenged the imposition and amount of a financial penalty of £2 million imposed by the PCA following findings of breaches of the Pubs Code.
On 14th October, 2020, the PCA issued an investigation report which found that Star had breached the Pubs Code. Star accepts that it breached the code in the manner set out in the report. The PCA made eight binding recommendations to Star aimed at improving processes and governance, and overall compliance with the Pubs Code.
Star has fully co-operated with the PCA and has implemented these recommendations. And the PCA says it has taken significant steps to reform its processes in order to comply with the Pubs Code.
The PCA and Star have now agreed to settle all outstanding litigation connected to the investigation report and financial penalty. As part of this settlement, the financial penalty, set out in the penalty notice, has been reduced from £2m to £1.25m. Star will pay a contribution to the PCA’s legal costs.
Separately, Star will also pay a contribution to the PCA’s costs of conducting the investigation, which resulted in the report and penalty notice.
