AgriFILE December 2010
Brethertons Appoints New Highly Respected Agricultural Solicitor
Regional Law firm Brethertons, have announced Felicity Wyatt, a leading agricultural Solicitor, has joined the Agricultural and Rural Business Team.
Felicity brings many years of Agricultural law experience in advising farmers and rural business clients, as well as landed estates and family trusts on a wide range of matters. Coming from a farming background, Felicity has a very special understanding of the issues that face clients in the agricultural sector today.
Joining colleagues Kate Austin, Elizabeth Young and Carol Ridgley, the team are responsible for advising on tax and succession planning for farming partnerships and families, sales and purchases of farms and bare land, tenancy agreements, grants and change of land use, and diversification issues. A good deal of the emerging work addresses issues of renewable energy sources.
Partner Elizabeth Young explains: “Felicity is a highly respected practitioner with a prominent profile in this industry sector. Her joining the firm is of particular strategic importance to the firm and its client base. It gives us an unmissable chance to deepen and develop the level of specialist expertise we can offer and is a further reflection of our commitment to strengthening the agricultural offering since our official launch just over a year ago”.
Felicity has been a principal solicitor for Hewitsons, Northampton for the last 3 ½ years. She holds several industry positions, including being an active member of the Agricultural Law Association, sitting on the Association’s Council, and being involved in the Next Generation Group of the ALA. She is also a member of the CLA, NFU and Women in Property.
Elizabeth concludes: “Brethertons have undertaken work for farming clients throughout our 200 year history. In fact, the firm’s founding partner, Count Ferdinand Wratislaw, had, according to the census of 1851: ‘6 children, 4 servants, 273 acres of agricultural land and 17 agricultural labourers’. So, farming has always played a huge part in Brethertons’ business, right from the start.”
Brethertons has recently been recognised by winning no less than five awards for: Best Use of IT and Communications Award – Coventry Telegraph Awards, Solicitor of the Year – News on the Block Magazine, Young Professional of the Year – News on the Block Magazine, Litigation Team of the Year - Credit Today Magazine and Lifetime Achievement Award at the Rugby Business Awards.
An evening of Agri Horror stories - Drinks Reception
We invite you to a drinks evening to share some of our experiences of legal agricultural horror stories. The event will be chaired by Felicity Wyatt who has recently joined the firm.
Overview
Typical horror stories include:
• Avoiding huge tax bills
• Partnership and family bust ups
• Keeping out of employment tribunals……..and many other scary tales
Date and Venue
Join us on 8th December 2010 at
Dunchurch Sportsfield and Village Hall
Rugby Road
Dunchurch
Rugby
CV22 6PN
Timings
6.00pm – Arrivals and drinks
6.30pm – Presentations
8.00pm – Finish
If you would like to attend could you please RSVP via email by 6th December 2010 to carlymcphillips@brethertons.co.uk or phone 01788 532903
For directions to the venue, please visit:
www.dunchurchsportsandvhall.co.uk
Primestock Show and Dinner
Brethertons Agricultural Department, for the second year running will be jointly sponsoring the Primestock Show and Dinner with the AMC in December.
Monday 6th December will be the Rugby Farmers Market based at The Royal Showground at Stoneleigh, where vendors will be exhibiting show stock. Friday 10th December will see the winners be awarded their prize at the Show Awards Ceremony and Dinner and Dance which is being held at the Dunchurch Park Hotel.
Felicity Wyatt, Brethertons Agriculture Solicitor said: “Brethertons is committed to supporting the local agricultural community through our attendance and sponsorship of this show”
Brethertons Achieves Top score in Legal 500 League Table
Brethertons has once again featured strongly in the latest edition of the Legal 500 – the comprehensive annual review of the legal industry.
This year the firm had four new practice areas recognised by the researchers: Agriculture and Estates, Corporate & Commercial, IP & IT and PI: Claimant. Other departments recognised include: Commercial Litigation, Commercial Property, Debt Recovery, Employment, Family and Wills, Tax and Trusts.
Partner Shaun Jardine explains: “We are delighted our lawyers have been recognised for their continued hard work, commitment and expertise. It is a tremendous tribute to their efforts that we continue to be rated as a quality firm.”
From the Legal 500 – Areas where the firm’s teams are singled-out for particular praise include:
Recommended in Commercial Litigation: Brethertons LLP’s team has outstanding property litigation expertise, and serves as honorary solicitors to the Institute of Residential Property Management. Shaun Jardine is ‘accessible, cheerful and has an iron fist for the opponent’, while legal executive Sioban Calcott has ‘a very quick grasp of the facts and is able to suggest appropriate courses of action’
Recommended in Commercial Property: Mary Anderson heads Brethertons LLP’s commercial property team and has considerable experience in secured lending transactions, representing both lenders and project financiers.
Recommended in Debt Recovery: “Headed by Shaun Jardine, Brethertons LLP is praised for its “can-do” mentality’, and is instructed by national and international clients, including property management companies and wine producers. The team maintains its presence on the panel of Top Service, which has brought in instructions from construction clients.”
Recommended in Employment: “Brethertons LLP’s team advised on the exit of a number of directors from organisations.”
Recommended in Agricultural Law: “Brethertons LLP has a ‘small, strong and well-connected’ team... Elizabeth Young another contact.”
Recommended in Family: “Brethertons LLP’s Simon Craddock, an ‘excellent and leading practitioner in international child abduction cases’, is regularly appointed in Hague Convention cases.” “Brethertons LLP has four trained collaborative lawyers and considerable experience in representing parents in international child abduction cases. Linda Jones gives ‘superb advice’, and is a Resolution-accredited specialist in the area of pension law issues within family proceedings.”
Recommended in IP & IT: “Brethertons LLP has been advising on a wide range of issues, including software licensing agreements. Brian Auld is the key contact.”
This accolade follows the recent news that Brethertons has received national recognition of its practice management standards, having been awarded the Law Society’s Lexcel Quality Certification. In addition, five senior experts were recognised as ‘Leaders in their Field’ specialising in the areas of Litigation, Insolvency, mediation, commercial property, commercial secured lending and Child Abduction - according to the independent legal ‘bible’ Chambers UK 2011
Heritage Property – New Guidance
The term ‘heritage property’ normally refers to works of art or important buildings that are of significant cultural importance. There are special rules for dealing with such property when it comes to capital taxes and, in appropriate circumstances, the rules allow it to be accepted in satisfaction of Inheritance Tax (IHT) and Estate Duty and conditionally exempt from other capital taxes.
For example, a painting of Venice by 18th Century Italian master Guardi was recently accepted in lieu of an IHT liability, and because the painting was worth more than the IHT due, a payment was made to the estate.
The relevant guidance on heritage property is contained in leaflet IR67, which was last updated in 1986. HM Revenue and Customs have announced that this is to be revised and new guidance will be published soon. It is rumoured that this will restrict the available relief on heritage property, which has been abused in some instances.
Beneficiaries and Special Circumstances
A beneficiary of an estate is only permitted to bring an action on behalf of the estate (a derivative action) where special circumstances exist.
In a long-running case, Mark Roberts, one of the beneficiaries under an estate, brought proceedings against two firms of solicitors that had acted for his brother, John Roberts, in his capacity as administrator of the estate. Mark claimed that he had suffered a loss due to the solicitors’ negligence.
The two brothers were beneficiaries under their grandmother’s will. Her will stated that if John paid the Inheritance Tax (IHT) due on her estate, he would inherit a farm and Mark would receive another property. Otherwise, the two properties would fall into the residue of the estate, to be divided between the two brothers and their aunt.
When his grandmother died in 1995, John paid some of the IHT due and was granted the right to administer the estate. He transferred ownership of the farm to himself and the property was sold. Of the sale proceeds, John received £285,000 and £20,000 was used to discharge estate liabilities. The remaining IHT due was not settled, however John had appointed two firms of solicitors to advise him.
In 2000, Mark had John replaced as administrator by his own solicitor and began proceedings against the two firms that had acted for his brother. He claimed that they were negligent in assisting him to breach the provisions of the will by allowing the sale of the farm without settlement of all the IHT due, thus causing Mark to suffer a loss. The farm, which was the largest estate asset, should have fallen into the residuary estate. In the event, there was insufficient money left to discharge the IHT due or to meet the pecuniary legacies.
The problem was that the solicitors owed a duty of care to the estate, not to Mark personally. He therefore sought to amend his claim to pursue it both personally and on behalf of the estate.
The Supreme Court held that Mark’s claim was time-barred and even if it were not, there were no special circumstances that permitted him to continue the claim on behalf of the estate.
With any claim, it is important to get the law right and to be aware of the applicable time limits.
Farming: one of the most dangerous ways to make a living in Britain in 2010
Figures published in June this year by the Health and Safety Executive (HSE) reveal that the number of people killed at work in Britain fell to a record low in the year 2009/2010.
However, not all sectors of the economy saw a reduction in the number of workplace deaths. The agriculture industry recorded a sizeable increase, with 38 workers killed on farms in 2009/2010, after a record low of 25 deaths in 2008/2009, and an increase over the five-year average of 37 deaths per year. The most recent figures give a rate of 8.2 fatal injuries per 100,000 workers. This makes working in agriculture one of the most dangerous ways to make a living in Britain. Of the 38 agriculture workers killed in 2009/2010, 17 were employees and 21 were self-employed. In addition, seven members of the public were killed in farm-related accidents.
National Farmers’ Union President, Peter Kendall, commented, following publication of the figures, that the NFU would establish an industry coalition with their partners and, through a concerted effort, would look to spread the health and safety message. He committed to continuing to support the HSE efforts to minimise farm deaths, especially through the “Make the Promise: Come Home Safe” campaign. NFU hosted the Farm Safety Summit in September 2010 with HSE. This encouraged positive and constructive discussion of this taboo subject within the agricultural industry. In addition, the “Make the Promise: Come Home Safe” campaign received accolade by way of prizes, including the prestigious Campaign of the Year award, at the PR Week Awards in October, considered to the ‘Oscars’ of the PR world.
Sandy Blair, HSE’s Board champion for Agriculture, has endorsed the “Make the Promise: Come Home Safe” campaign to improve safety in farming. In addition, HSE’s Head of Agriculture, Graeme Walker, spoke to Radio 4 on Farming Today recently, following release of the latest major injury and fatality statistics for agriculture.
Felicity Wyatt of Brethertons commented that the HSE figures show some of the reality of what the industry needs to deal with, although the HSE has announced that it estimates that only around 30% of agricultural injuries are reported. “It is shocking, and disappointing for the industry, that deaths have returned to previous levels, and serious injuries are still increasing. We really encourage our farming clients to embrace the principles of the “Make the Promise: Come Home Safe” campaign, and sign up with the 30,000 or so current signatories. Understandably, it is devastating to farming families or partnerships if death or serious injury occurs on what would otherwise be a normal working day on the farm.”
Poor Plan on Conveyance – Court of Appeal Rules
Further to our article entitled “Unclear Drafting Blamed for Dispute over Right of Way” in our June AGRIFile, here is another case where a less-than-perfect conveyancing service led to problems in Court.
A poorly-drawn plan and a refusal to compromise led to an argument over the boundary between two rural properties reaching the Court of Appeal.
The argument between the owners of adjacent land arose because there was a brook and a fence that were close to one another. One owner claimed the fence was the boundary; the other held that the brook divided the properties.
The map accompanying the conveyance was unclear – it merely showed a wavy line which represented the stream. The fence was not shown on the plan. However, because the fence was in situ when the land was conveyed, Lord Justice Mummery (the other Court of Appeal judges agreeing with him) ruled that it marked the boundary between the properties. When giving his judgment, he was highly critical of the inability of the neighbours to compromise and of the resultant costs for the loser of the dispute.
Be that as it may, it has been reported that an appeal to the Supreme Court is under consideration.
“Clarity of plans and wording in transfer documentation is essential if the risk of future litigation over boundaries is to be prevented,” says Felicity Wyatt of Brethertons. “In the event of a dispute with a neighbour, we would work with you to assess fully and accurately the strengths and weaknesses of your and your neighbour’s case, and, generally, always recommend our clients to try to settle, where possible, by compromise,” Felicity adds. “However, in order to avoid problems between neighbours in the future, if farmland is sold, and part is retained, it is essential that proper plans are prepared, and the transfer wording deals properly with the cross referencing to the transfer plans.”