Davies v H and E Ecroyd Ltd: ChD 1996

The partnership was made up of a 109 acre dairy holding owned by one partner, and the second partner managed the business. The dairy holding itself was kept out of the partnership assets by explicit agreement. D, the former manager claimed, on the partnership being dissolved, that a milk quota had become a partnership asset by dint of his efforts.
Held: The value of the quota was not on a par with the agricultural holding, since it arose only after the partnership commenced. A court should not extend what the partners had set out in the agreement.
Blackburn J set out the basis for giving partners rights in relation to the asset of a partner as follows: ‘It arises where a partnership expends money for the benefit of a partner in circumstances where justice requires that, in taking partnership accounts, some allowance should be made to the partnership against that partner for some or all of the amount of the expenditure or of the enhanced value brought about by the expenditure.’


Blackburne J


[1996] 30 EG 97, (1996) 2 EGLR 5


Arbitration Act 1979 2


England and Wales


AppliedFaulks v Faulks ChD 1992
One brother, as tenant farmed land under a partnership with his brother. On the death of either partner, an account was to be taken and a valuation. On the death of the tenant, there was a dispute as to whether the value of the farm’s milk quotahad . .
Lists of cited by and citing cases may be incomplete.

Company, Agriculture

Updated: 12 April 2022; Ref: scu.458597