The small hours

The High Court recently ruled on whether a licence holder could transfer a 3 am licence for premises set for demolition to another venue. Andrew Woods analyses the outcome.

In the landmark case of R (on the application of A3d2 Ltd (t/a News Leisure)) v Westminster Magistrates' Court [2011] EWHC 1045 (Admin) Mr Justice Cranston ruled on the legal implications of a Premises Licence Holder losing the right to occupy the licensed premises which in the particular circumstances of the case were to be demolished as part of a wider redevelopment programme.

The premises concerned traded on Regent Street in London in the old Cafe Royal site and in 2008 the occupier of the licensed premises received confirmation that the lease of the premises would not be renewed as the premises were being demolished as part of a redevelopment programme.

The premises closed on 1 January 2009 and five weeks later an application was made by the operator of the closed premises (Premises A) to extend the hours of a nearby premises (Premises B) operated by the same operator. Premises A had a terminal hour of 3 am, Premises B had a terminal hour of 1 am and the application was to, in effect, transfer the 3 am licence over to Premises B and at the same time surrendering the licence to Premises A.

This application was refused by the city council's Licensing Committee and further refused on appeal to Westminster Magistrates' Court, when District Judge Roscoe ruled that there was no evidential weight/value to the licence at Premises A because the premises had closed and was being demolished.

The High Court was asked to rule on this particular point. If premises are to be demolished and if you lose the right to occupy a premises, is the premises licence a "dead letter" and of no value to the Premises Licence Holder; in particular if the Premises Licence Holder is looking to utilise the licence and move it or part of it to other premises?

Mr Justice Cranston supported the decision of the Licensing Committee and the Council. He said:
"Crucially the Cheers premises (Premises A) were closed and at the time of the application earmarked for demolition. The Judge sensibly concluded that the surrender of a redundant premises licence relating to such premises, premises which by the time of the hearing were demolished as planned could not of itself be capable of rendering the application...exceptional in policy terms. None of this is inconsistent with the legislation. The Licensing Act 2003 establishes a clear link between a premises licence and the particular premises to which it relates. Where premises close because they are to be demolished the premises licence is effectively a dead letter. The licence may be extant because the holder continues to pay the fee, but the licence is of no practical use because the premises to which it relates cannot be used."

For operators of a premises licence whose lease expires, or who are served with any form of notice which ends their right to occupy then the premises licence is of no practical use and no evidential value.

Andrew Woods is a partner at Walker Morris. He can be contacted on 0113 283 2500 or by email at This email address is being protected from spambots. You need JavaScript enabled to view it..