The Legal Services Commission (LSC) is set to pay out hundreds of thousands of pounds after backing a 14-year action against a public house chain.


The LSC is expected to receive a £500,000 bill for costs following its 1993 decision to grant legal aid to Bernard Crehan.

Mr Crehan, a public house tenant, had argued that the beer tie-in system obliging him to buy stocks exclusively from his landlord brewery, now Inntrepreneur, was anti-competitive.



The House of Lords last year overturned an appeal court ruling in his favour, opening the door for Inntrepreneur's lawyers to seek to recover its costs in relation to the Court of Appeal proceedings.



The Senior Costs Judge, Peter Hurst, has now ruled that it would be 'unjust and inequitable' if Inntrepreneur were not to recover its reasonable costs - estimated at £500,000.



Rupert Croft, a partner at Maitland Walker, the solicitors acting for the LSC, said: 'While disappointed with the decision on the facts, the commission was pleased that Chief Master Hurst confirmed that the courts have an untrammelled discretion in these matters to do what is just and equitable in all the circumstances.'



An LSC spokesman said: 'Mr Crehan received legal aid to enable him to be represented as the lead case in what is considered a landmark multi-party action.



'Taking one case forward as the test case has reduced the overall legal aid costs.'



Jonathan Rayner