Q&A Could I get compensation if I quit the family farm I’m being squeezed out of?

Q:      My older brother and I have worked on the family farm since leaving school. I wanted to go to university but Dad wouldn’t let me. He said we need to work as partners and preserve the farm for future generations. The problem is we have no formal partnership. Dad just controls everything and pays us a basic wage. As my brother is now marrying into a neighbouring farming family I’m worried I will get squeezed out and I will have given up the chance of a different career for nothing. Is there any way I could get some kind of financial settlement from the farm to help me go my own way?

A:       It is sadly not uncommon for offspring to work on the family farm for low wages and without a formal employment contract or partnership agreement, in the belief that they will one day inherit the farm. However, things can change for any number of reasons, and the offspring may be left with little or nothing to show for their hard work as well as having lost the opportunity to reach their potential in other areas.

There is a legal principle called Proprietary Estoppel. This can be used in family farming disputes when someone is led to believe they will inherit all or part of a farm and they rely on that promise but later suffer detriment because the promise is not fulfilled. It is not easy to prove Proprietary Estoppel as you would need to prove the inheritance had been promised; that you had relied on that promise; that you suffered detrimentally because that promise was not kept. If proven, however, the court can grant financial compensation and/or other remedies.

Such situations can be avoided of course if intentions about inheritance are formalised in a Will, and expectations are openly communicated. Where informal arrangements exist, families should consider putting them in writing or revisiting them with legal input to avoid future misunderstandings.

This question has been answered by James Denton, a Solicitor with GHP Legal.  If you would like to speak to someone about this or any other legal matter, please visit our website www.ghplegal.com and use the contact us form, or call us on: Wrexham 01978 291456, Llangollen 01978 860313, Oswestry 01691 659194