What Moore can we learn from the recent proprietary estoppel cases?

Following the festive period, when families traditionally come together, the new year may be a timely occasion to revisit the recent spate of proprietary estoppel cases involving farming families and consider what steps might be necessary to protect you and yours. 

The definition of proprietary estoppel and how a court will test it, is well-established and ultimately simple; it is all a question of fairness.  If one person makes a clear representation to another – “one day, son, all this will be yours”’ is the perfect example – and the other person, relies on that representation to his or her detriment, then the person making the representation is ‘estopped’ from later withdrawing that promise and leaving the person who has been relying on it, high and dry.

The 2016 Moore case is typical: here, the representation was that the son would inherit his father’s share in the family farming business.  The son relied on that representation to his detriment and instead of taking a more highly paid job elsewhere, worked long hours on the farm for modest pay, in the expectation that it would, one day, all be his.  His father then changed his mind and excluded his son from his Will.  The son commenced proceedings against his father, claiming that it was wrong for his father to renege on his promise and that he, the son, had been unfairly treated and lost out, because he had relied on his father’s promise. 

Agreeing with the son, the court then had to work out how to even things up and balance out the competing moral and legal claims on the assets.  In the end, the son did indeed get his promised share in the family farming business. 

Needless to say, prevention is better than the cure in such situations … and considerably cheaper.  Of course you cannot foresee every eventuality, but you can make sure that you are in a robust position to start with:  ensure that you have a professionally prepared, written farming partnership agreement; take time to be properly advised on your Wills and estate planning; last but not least, take advice on whether and how to document discussions and conclusions reached.  In all of the recent cases, the quality of evidence was crucial and where professional advisers had documented discussions, they carried more weight, than where the court was relying on individuals’ memories.  It may sound overly formal, but being able to refer to a document can help take the heat out of an argument over what was or was not said and if it avoids a family dispute ending up in court, that has to be worthwhile.  

Elizabeth Earle 
Senior Associate in the Agriculture, Estates and Rural Property Team, Muckle LLP

dd 0191 211 7851
mob 07701 336 260
elizabeth.earle@muckle-llp.com

This move to a perceived more environmentally friendly way of farming is creating the need for some important business decisions to be made on machinery replacement needs, as the more conventional methods of farming may no longer be suitable to achieve the funding which will replace the current BPS.

Grant funding has helped some make early changes through the addition of the likes of no-till drills, which in turn has made much of the machinery traditionally used for arable cropping now redundant. For some, the changes afoot are all too daunting, and this provides an opportunity to look at retirement more seriously.  Whether it be retirement or simply business re-organisation to address the upcoming changes in UK farming, the on-site auction remains an effective way of disposing of farm machinery and equipment quickly and efficiently.

Selling items of machinery individually can be a time-consuming process. However, a machinery auction is a much quicker and simpler method of sale. Farm auctions provide an opportunity to discard of unwanted and surplus equipment in one clear swoop. Larger more valuable items create exposure and interest which then benefits the sale of smaller lots. Buyers will often attend an auction with the intention of buying a particular item, but then on the day discover other items also of value to them.

Fisher German’s auction team boasts over 140 years of experience in selling at auction both in the UK and international markets, giving both unrivalled knowledge and the empathy required in what can sometimes be a difficult decision. The team works very closely with our regional and national farm agency teams, and can provide a service bespoke to an individual businesses requirements, ensuring a seamless transition between the land or farm sale and the machinery sale.

Our aim is to exceed our client’s expectations in preparation for, conduct of and follow up of their farm machinery auction. Fisher German’s broad service offering will ensure that our client are fully supported following the sale. If you have farm machinery that you wish to dispose of, or machinery to be valued, please contact Jack Healy here who will be delighted to advise on your options.

The 2018/19 National Final will be held on Thursday 28th February 2019 at the beautiful Chateau Impney, in Worcestershire. The Chateau’s blend of iconic French architecture and stunning English parkland will be a spectacular backdrop for one of the biggest celebrations of British rural businesses to date.

Between 9 and 26 October last year, the Rural Business Awards team travelled across the country, over 1,200 miles in fact, stopping off at the six award regions to celebrate everything rural!

In countryside venues near Bolton, Nottingham, Abergele, Bath, Dorking and Ipswich, nearly 1,000 people were hosted bringing together some of the best rural businesses in Britain, and sharing lots of inspiring stories along the way.

The winner from each of the categories, in every region have been put forward to the National Final, where the national champions for 2018/19, will be announced. As national sponsor of the Rural Business Awards Outstanding Rural Diversification Project category, we would like to congratulate all regional winners and we look forward to celebrating with you in February!

Diversification of agricultural enterprises is increasingly being considered to broaden income streams to rural businesses, Rob Browne, looks at the recipe for success when looking to create a new venture.

Whether looking to bake a cake or pioneer into a new niche market, to be successful in anything you must first consider the recipe. Despite being an overused cliché, logic suggests that you do in fact need a recipe for success. Whilst at home we may follow granny’s recipe for a lemon drizzle, in the business world we replace a recipe with a business plan.

All recipes require preparation, ingredients and a method, which vary based on the time and budget available.

Preparation

Before setting off in a fresh new direction, preparation is key.

As with many new ventures, capital will need to be raised to get the project off the ground, securing investment from a bank or perhaps family member. It should not be underestimated how long this preparation will take – it will vary considerably from one proposal to another, but should not be rushed.

At the very least, those looking to diversify should be able to answer the following questions:

• What is your product?
• Who is your target audience?
• What will this enterprise add to your existing business?
• Does this enterprise compliment your existing business?
• Have you undertaken suitable market research to support your proposals?
• What skill set is required?
• What does your competition look like?
• Have you identified and undertaken relevant training?
• Are you truly committed to seeing this idea through from conception to reality?
• Have you involved experts to assess whether this proposal stacks up?
• How quickly can you start?

Ingredients

As the questions are answered, you will quickly start to identify the ingredients for your recipe, for example:

• Capital
• Skills and training
• Staff
• Existing assets and new infrastructure
• Determination and focus
• Appropriate planning and research
• Solid existing core business

Measurements

Without correct measuring equipment a few extra grams can ruin a recipe. A business plan should set out clear and measurable objectives that can be monitored, and if necessary adjusted. Be careful to avoid surplus measurements to save cost and waste.

Method

You have now spent months, if not years, preparing to launch your business, carefully selecting the ingredients and gaining funding to take the business forward. However, the hardest part is yet to come. As with preparing a food recipe you must write, test and amend the methodology. A business will not be without its teething issues, so it is key to get the foundation ingredients right at the outset.

Check the method against the ingredients – do they all coincide and complement one another?

You should list the ingredients in the order that they appear in the method. Be clear in the methodology and don’t presume that others will immediately understand how it will all work. The concept may have been in your head or on the back of an envelope in the early stages of conception, so ask someone to read through the method, and sense check it.

Take care to clearly describe how the ingredients should be prepared and remember that small inaccuracies in certain elements of your recipe, be it time or an ingredient, can influence the end result.

Finally, know your audience. Whatever you are preparing, make sure there is a clear focus on the end consumer.

For further information, contact Rob Browne here