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COSTS AWARDING POWERS IN LICENCING HEARINGS – IS IT TIME?

The current scenario is one on which many of us in the legal profession have pondered for many years and highlights a pressing issue in licensing hearings, particularly when reviews are initiated by residents. The absence of parties at these crucial hearings can have severe implications, as seen in a recent case I handled for a reputable client. Despite proactive measures taken by our client, including engaging with residents and presenting a robust defence supported by expert reports, the review proceeded without the residents’ presence. They just didn’t bother to turn up!

The lack of attendance resulted in the collapse of the case against our client, leaving them burdened with substantial costs incurred in preparing for the hearing. The case melted away like the current snows in the rising sun. There is a glaring gap in the system under the Licensing Act 2003 as licensing subcommittees lack the power to allocate costs, even when justified. This leaves businesses like those in our great hospitality sector grappling with financial setbacks, especially during critical periods such as the festive season. Owners and management also have their focus taken off the success of the business during such crucial periods.

Considering the significant impact of no-shows on the involved parties, it raises a pertinent question: Should licensing committees be empowered to order costs in situations where parties fail to attend hearings without prior notice, compelling others to bear the financial brunt of defending against unsubstantiated claims? This vital consideration aims to ensure fairness and accountability in licensing proceedings, preventing undue financial strain on businesses navigating already challenging operational landscapes.

Your thoughts on this matter are invaluable as we strive to advocate for a more equitable and efficient licensing framework that safeguards the interests of all stakeholders involved.

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