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12
Sep
2008

Decision in Land Court Diversification Case

Robert Sutherland of Terra Firma Chambers acted for the successful landlord in the recently decided case of Grant v Glengarry Estate Trust.  The case had been raised by the tenant in the Scottish Land Court asking for an order requiring the landlord to enter into a wayleave agreement, which would enable the tenant to carry out a diversification scheme in a manner which was most favourable to the tenant.  The Court however decided that even if certain diversification schemes would be rendered impossible without an implied obligation on the part of the landlord to co-operate that did not mean that such an implied obligation was necessary in order to give effect to the legislation.  The diversification scheme provisions in Part 3 of the Agricultural Holdings (Scotland) Act 2003 did not require a landlord to actively co-operate with a scheme which a tenant could not pursue at his own hand or with such assistance as he could procure.

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