Farming Partnership Dispute

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

Following a change in succession, one partner began to spend less and less time on the business and devoted himself to agricultural business, but outside of the partnership. He went as far as to set up family members in a competing business.

Our client found himself facing an intolerable situation. He ended up single-handedly milking a large herd of pedigree cows with no support. Even worse, as the parties’ families lived in close proximity, there was constant friction at home and on the yard.

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

On advice, our client stood their ground and countered with a threat to pre-emptively sell all 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 individual farming businesses, but fully independent of each other.

Hibberts LLP have highly experienced agriculture and litigation teams and are well placed to deal with all manner of agriculture and land-related matters.