Farming Partnership Dispute

Partner Michael Ward acted recently in a farming family partnership dispute where the partners fell into major dispute.  As is often the case, the partnership was of long standing, a family affair and there was no formal partnership agreement.

With a change in succession, one partner began to spend less and less time on the business and preferred to devote themselves to agricultural business outside of the partnership.  They even went as far as to set up family members in a competing business.

Our client found themself in an intolerable situation, not least single-handedly responsible for a large and very high-quality herd with no support.  Worse still, the parties’ families lived in close proximity, so there was inevitably friction at home and on the yard.

With time, it became apparent that the ‘defaulting’ partner had every intention of ending the partnership and driving our client out of the business and off the land. They had even gone as far as to instruct a barrister to draw up court proceedings, threatening all manner of interventions.

On advice, our client stood their ground and countered with a threat to sell partnership and all jointly owned land.  Faced with firm resolve, strong legal argument and a credible position, the defaulting partner came to the table.  At mediation, the parties were able to agree an equitable settlement, with each party able to move forward with separate farming businesses fully independent of each other.