Macintyre v. Board of Agriculture for Scotland [1915] ScotLR 316 (21 August 1915)

Macintyre v. Board of Agriculture for Scotland [1915] ScotLR 316 (21 August 1915)

Where the whole of a tenant's farm is compulsorily acquired, compensation for loss of profits should be based on the estimated period required for the tenant to find a comparable holding, not the full unexpired lease term, and proper deductions for the value of the tenant's own labour and interest on capital are to be made. The Court, not the arbiter, determines expenses of a special case. No additional compensation is due for forced sale of stock beyond normal market risk.

Citation
[1915] ScotLR 316
Parties
Claimants: Dugald Macintyre and John Macintyre; Respondents: Board of Agriculture for Scotland
Jurisdiction
Scotland
Judgment Date
21 August 1915
Procedural Posture
Stated Case (special Case) From Arbitration / Judgment on Questions of Law Stated by Arbiter Prior to Final Award
Outcome
Questions 1, 2, and 5 answered in the negative; questions 3 and 4 answered in the affirmative. No expenses awarded to either party.
Legal Topics
Landlord and Tenant, Compulsory Acquisition, Compensation, Smallholdings, Arbitration, Expenses
Land Law Agricultural Law Landlord and Tenant Compulsory Acquisition Compensation Smallholdings Arbitration Expenses

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Parties

Dugald Macintyre and John Macintyre

Claimants

Board of Agriculture for Scotland

Respondents

Procedural Posture

Stated Case (special Case) From Arbitration / Judgment on Questions of Law Stated by Arbiter Prior to Final Award

Legal Issues

  1. 1 Whether compensation for loss of profits should be calculated for the full unexpired period of the lease when the whole farm is compulsorily acquired
  2. 2 Whether the arbiter has exclusive jurisdiction over expenses of a special case
  3. 3 Whether deduction for value of claimants' own labour is proper in estimating net profits

Ratio Decidendi

Where the whole of a tenant's farm is compulsorily acquired, compensation for loss of profits should be based on the estimated period required for the tenant to find a comparable holding, not the full unexpired lease term, and proper deductions for the value of the tenant's own labour and interest on capital are to be made. The Court, not the arbiter, determines expenses of a special case. No additional compensation is due for forced sale of stock beyond normal market risk.

Court Disposition

Questions 1, 2, and 5 answered in the negative; questions 3 and 4 answered in the affirmative. No expenses awarded to either party.

Orders

  • Compensation not to be calculated for the full unexpired lease term but based on time to find a comparable farm.
  • Court, not arbiter, decides expenses of special case; no expenses to either party.