Man awarded £2.7m worth of farm after dispute with parents

The farmer's son has won a slice of the £2.7m farm business following a High Court decision
The farmer's son has won a slice of the £2.7m farm business following a High Court decision

The High Court has awarded a man £2.7m worth of a farm business following a dispute case involving a proprietary estoppel claim against his own parents.

Andrew Guest, 52, brought a claim against his parents David and Josephine, in respect of the family dairy farm known as Tump Farm in Monmouthshire.

The farm was owned by David, and occupied by him and Josephine. Andrew had left the farm in 2015, after having worked on the farm since around 1982 when he finished school.

Andrew had also, since around 1989, lived in a cottage on the farm grounds with his family, up until around 2017.

He also had a younger brother and sister, whose interests also had to be taken into account by the court.

In 1981, Andrew’s father had left a will that divided the farm in equal shares between Andrew and his brother, with a pecuniary legacy to be paid to their sister equivalent to a 1/5 share of the net value of the residuary estate.

A new will was however made in 2018 by David, excluding Andrew entirely, and leaving the farm to Andrew’s brother and a lump sum of £120,000 and part of the land, to his sister, with a right of occupation for his wife Josephine.

David had written a letter justifying his decision to exclude Andrew, on the basis that he “lost all trust in him” after he left the farm.

Proprietary estoppel

These claims are usually being brought after the death of the person who made the promise, notes Heather Roberts, will disputes associate at Irwin Mitchell.

However, despite his parents still being alive, and given their deteriorating relationship, Andrew brought a claim against them for proprietary estoppel.

He argued that over the years he worked on the farm, he was only paid a very basic wage, in contemplation of a promise by his parents, that he would one day inherit the farm.

Andrew argued that he could have worked elsewhere for a much higher wage, and chose not to do so.

He therefore relied on his parents’ promise, to his detriment, and therefore sought to claim a significant portion of his parents’ assets, including the farm and related farming assets.

Awarded £2.7m

The High Court accepted Andrew’s evidence and found in his favour, awarding him a lump sum that equated to 50% (net of tax) of the value of some of the farm and its land.

He was also awarded 40% (net of tax) of the rest of the land and buildings on the farm. The total amounts to £2.7m.

Ms Roberts highlights how the courts have seen an increase in these cases not only being issued, but making it all the way to trial, so that these decisions are reported.

Given that the majority of these types of family disputes tend to settle before trial, this gives an idea of the amount of these cases being brought, and the importance of getting early and specialist legal advice, she says.