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AGRICULTURAL LAW

Robert Sutherland, Advocate
  Terra Firma Chambers
Rent Reviews
Morrison-Low v Paterson, SLC/233/08,
2 June 2010
•Court has to make decision based on
evidence before
•no reason why parties could not choose
from one of a number of different
methods, e.g. agreed expert valuer,
written submissions and inspection
Rent Reviews
Morrison-Low v Paterson, SLC/233/08,
2 June 2010
•comment on statutory disregards of
tenant’s occupation and scarcity
•LDT’s and SLDT’s could be comparables
•current economic conditions – not
appropriate to assess rent based on
budget for single year
Rent Reviews
  Morrison-Low v Paterson, SLC/233/08,
  2 June 2010
• SFP not to be considered as farm income
  •Assumptions:
– potential tenant would have an appropriate level
  of SFP and would be able to pay a higher rent
– sufficient capital to provide equipment
– a major share of profits to go to landlord
Limited Partnership
Salvesen v Riddell, SLC/2/09, 29 July
2010
•limited partnership until 28/11/2008 and
from year to year thereafter - notice of
dissolution served on 3/2/2003
•2003 Act, s72(9)(a)(i) – notice served
otherwise than for purpose of depriving
general partner of any right deriving from
s72?
Limited Partnership
Salvesen v Riddell, SLC/2/09, 29 July
2010
•purpose? – to avoid the risk that 2003 Act
would prevent landlord from terminating
tenancy – landlord’s own plans?
•retrospective effect
•ECHR?
•intention of Scottish Parliament?
Interpretation of lease
• Forbes v Cameron, 2010 SLT 1017
• 1913 Lease - rent payable at Whitsunday
  and Martinmas; General Articles specify
  dates (15 May, 11 November)
• NQ - remove Whitsunday (28 May) 2009
• S1(4) Term & Quarter Days (S) Act 1990
  cuts across principles of construction
  followed by SLC
Changes to the lease
Fraser v Trs of the Cawdor Scottish
Discretionary Trust, SLC/75/09, 22
March 2010
•originally 2 separate leases to 2 tenants –
whether amalgamation into 1 holding = 1
lease?
•tenant = father, whether subsequent
discussions and correspondence =
acceptance of informal assignation to
son?
Irritancy
Mount Stuart Trust v McCulloch, 2010
SC 404, 2010 SLT 409
•interest payable on late rent
•rent paid after due date an irremediable
breach?
– landlord should have served a notice to pay
•S.13 rent review application before SLC
had no effect on liability to pay rent
Land Court Procedure
• Loudon v Hamilton, 2010 SLT 984
• oral agreement, < 1yr, renewal anticipated
• stock on farm continuously v IACS returns,
  subsequent sales of land in parcels
• [para 29] ‘.opportunistic..deplorable..deplorable
  .. scandalous averments…worst of all…’
• SLC granted interdict on strength of a
  letter – ‘not appropriate’ – ‘suggestions’:
  real emergency?; hearing; caution?
Land Court Procedure
• Colstoun Trust v AC Stoddart & Sons,
  2010 SC 399
• litigation to be conducted efficiently,
  expeditiously, fairness to all
• plea of competency could be lost by delay
• discretion, interests of justice, undesirable
  that rent review delayed further
• SLC should be cautious about expressing
  obiter dicta without full argument / hearing
Single Farm Payment
Landkreis Bad Dürkheim v Aufsichts-
und Dienstleistungsdirektion, C-61/09,
ECJ, 14 October 2010
•not necessary to pay monetary rent under
a lease or similar
•sufficient if have autonomy for agricultural
activities for at least 10 months
•provided also used for own activities not
matter if also have obligations to 3rd party
Single Farm Payment
Schecke GbR & Eiffert v Land Hessen,
C-92 & C-93/09, AG Opinion, 17 June
2010
•Article 8 ECHR; Articles 7 & 8, CFREU;
Article 6 TEU
•Article 44a, Council Regulation
1290/2005 invalid in requiring automatic
publication of names & locality of all
beneficiaries together with sums received
Single Farm Payment
R. (on the application of TA Gwillim &
Sons) v Welsh Ministers, 2010 EWCA
Civ 1048, 6 October 2010
•“production was adversely affected” apt
to cover any situation where production
lower than it would otherwise have been
•includes where planned or expected
increase in production could not be
implemented
Cloning



Dolly & Bonnie
Copyright : The Roslin Institute
Cloning
Steven Innes and Callum Innes, Nairn
•used 2 cloned bulls to sire 96 cows
•meat and milk from cows entered UK
food chain?
•FSA say license required as 'novel foods‘
•rules on novel foods apply to offspring of
cloned animals?
•SCoFCAH to take this issue on
Consultation
Proposals to Amend the Agricultural
Holdings Acts 1991 and 2003
•SLDT’s convertible to LDT’s during
lifetime
•minimum term of LDT reduced to 10
years
•amendment of S. 16 (1)-(5), 2003 Act -
provisions regarding fixed equipment
supplied by landlord of LDT and SLDT
Consultation
Proposals to Amend the Agricultural
Holdings Acts 1991 and 2003
•‘viable unit’ test in place of ‘two-man unit’
•changes to procedures for nullification of
PLA
•Morrison-Low v Paterson’s Exrs, 2005
SLT (Land Ct) 2 – amendment to S.13,
1991 Act - written notice
AGRICULTURAL LAW

Robert Sutherland, Advocate
  Terra Firma Chambers

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Agricultural law update Perth - 2010 11-11

  • 1. AGRICULTURAL LAW Robert Sutherland, Advocate Terra Firma Chambers
  • 2. Rent Reviews Morrison-Low v Paterson, SLC/233/08, 2 June 2010 •Court has to make decision based on evidence before •no reason why parties could not choose from one of a number of different methods, e.g. agreed expert valuer, written submissions and inspection
  • 3. Rent Reviews Morrison-Low v Paterson, SLC/233/08, 2 June 2010 •comment on statutory disregards of tenant’s occupation and scarcity •LDT’s and SLDT’s could be comparables •current economic conditions – not appropriate to assess rent based on budget for single year
  • 4. Rent Reviews Morrison-Low v Paterson, SLC/233/08, 2 June 2010 • SFP not to be considered as farm income •Assumptions: – potential tenant would have an appropriate level of SFP and would be able to pay a higher rent – sufficient capital to provide equipment – a major share of profits to go to landlord
  • 5. Limited Partnership Salvesen v Riddell, SLC/2/09, 29 July 2010 •limited partnership until 28/11/2008 and from year to year thereafter - notice of dissolution served on 3/2/2003 •2003 Act, s72(9)(a)(i) – notice served otherwise than for purpose of depriving general partner of any right deriving from s72?
  • 6. Limited Partnership Salvesen v Riddell, SLC/2/09, 29 July 2010 •purpose? – to avoid the risk that 2003 Act would prevent landlord from terminating tenancy – landlord’s own plans? •retrospective effect •ECHR? •intention of Scottish Parliament?
  • 7. Interpretation of lease • Forbes v Cameron, 2010 SLT 1017 • 1913 Lease - rent payable at Whitsunday and Martinmas; General Articles specify dates (15 May, 11 November) • NQ - remove Whitsunday (28 May) 2009 • S1(4) Term & Quarter Days (S) Act 1990 cuts across principles of construction followed by SLC
  • 8. Changes to the lease Fraser v Trs of the Cawdor Scottish Discretionary Trust, SLC/75/09, 22 March 2010 •originally 2 separate leases to 2 tenants – whether amalgamation into 1 holding = 1 lease? •tenant = father, whether subsequent discussions and correspondence = acceptance of informal assignation to son?
  • 9. Irritancy Mount Stuart Trust v McCulloch, 2010 SC 404, 2010 SLT 409 •interest payable on late rent •rent paid after due date an irremediable breach? – landlord should have served a notice to pay •S.13 rent review application before SLC had no effect on liability to pay rent
  • 10. Land Court Procedure • Loudon v Hamilton, 2010 SLT 984 • oral agreement, < 1yr, renewal anticipated • stock on farm continuously v IACS returns, subsequent sales of land in parcels • [para 29] ‘.opportunistic..deplorable..deplorable .. scandalous averments…worst of all…’ • SLC granted interdict on strength of a letter – ‘not appropriate’ – ‘suggestions’: real emergency?; hearing; caution?
  • 11. Land Court Procedure • Colstoun Trust v AC Stoddart & Sons, 2010 SC 399 • litigation to be conducted efficiently, expeditiously, fairness to all • plea of competency could be lost by delay • discretion, interests of justice, undesirable that rent review delayed further • SLC should be cautious about expressing obiter dicta without full argument / hearing
  • 12. Single Farm Payment Landkreis Bad Dürkheim v Aufsichts- und Dienstleistungsdirektion, C-61/09, ECJ, 14 October 2010 •not necessary to pay monetary rent under a lease or similar •sufficient if have autonomy for agricultural activities for at least 10 months •provided also used for own activities not matter if also have obligations to 3rd party
  • 13. Single Farm Payment Schecke GbR & Eiffert v Land Hessen, C-92 & C-93/09, AG Opinion, 17 June 2010 •Article 8 ECHR; Articles 7 & 8, CFREU; Article 6 TEU •Article 44a, Council Regulation 1290/2005 invalid in requiring automatic publication of names & locality of all beneficiaries together with sums received
  • 14. Single Farm Payment R. (on the application of TA Gwillim & Sons) v Welsh Ministers, 2010 EWCA Civ 1048, 6 October 2010 •“production was adversely affected” apt to cover any situation where production lower than it would otherwise have been •includes where planned or expected increase in production could not be implemented
  • 15. Cloning Dolly & Bonnie Copyright : The Roslin Institute
  • 16. Cloning Steven Innes and Callum Innes, Nairn •used 2 cloned bulls to sire 96 cows •meat and milk from cows entered UK food chain? •FSA say license required as 'novel foods‘ •rules on novel foods apply to offspring of cloned animals? •SCoFCAH to take this issue on
  • 17. Consultation Proposals to Amend the Agricultural Holdings Acts 1991 and 2003 •SLDT’s convertible to LDT’s during lifetime •minimum term of LDT reduced to 10 years •amendment of S. 16 (1)-(5), 2003 Act - provisions regarding fixed equipment supplied by landlord of LDT and SLDT
  • 18. Consultation Proposals to Amend the Agricultural Holdings Acts 1991 and 2003 •‘viable unit’ test in place of ‘two-man unit’ •changes to procedures for nullification of PLA •Morrison-Low v Paterson’s Exrs, 2005 SLT (Land Ct) 2 – amendment to S.13, 1991 Act - written notice
  • 19. AGRICULTURAL LAW Robert Sutherland, Advocate Terra Firma Chambers