Scottish Government may be forced to pay compensation to tenant farmers affected by flawed legislation passed more than a decade ago.
A number of tenant farmers have been evicted, or face eviction, as a result of a remedial order brought following the Salvesen-Riddell case – a legal challenge brought about by flawed legislation introduced by government in its 2003 Agricultural Holdings Act.
While the legislation was being approved and amended, it emerged that general partners in a limited partnership tenancy might be given security of tenure, causing some landlords to issue letters to quit to their tenants.
In reaction, the then farm minister, Ross Finnie, decreed that anyone served with such a notice would be granted a full tenancy.
This was then challenged, via the Salvesen-Riddell case, and deemed to be against the human rights of landlords.
A remedial order, which came into force in April 2014, decreed that any full 1991 secure agricultural tenancies created as a result of the flawed legislation were no longer guaranteed for those who had their limited partnership dissolved in the 2002-03 window.
In these cases, landlords were given the option to convert the tenancy and take possession of the holding following a three-year notice period. Government also offered to fund mediation between affected tenants and landlords.
In a Court of Session ruling earlier this week, Judge Lord Clark ruled that tenants evicted as a result of the faulty legislation may be due compensation.
He rejected the tenants’ claims based on the value of the tenancy but said compensation should be paid in respect of specific losses directly sustained by the tenants who had acted in good faith on defective legislation and ‘for frustration and inconvenience’.
The Scottish Tenant Farmers’ Association said the court ruling marked a partial victory for the tenant farmers involved.
Association director Angus McCall, who farms in Sutherland, said: “This is an incredibly complex case and it will take some time for the tenants’ legal team to evaluate Lord Clark’s ruling. What has been made clear, however, is that the tenants are due some compensation for the harm caused to them by the flawed legislation instigated by the Liberal/Labour coalition and passed by the Scottish parliament 14 years ago.”
A Scottish Government spokesman said: “We will take time to carefully consider the terms of the judgement and any action required to be taken as a consequence. It is not appropriate to comment further on the detail of the judgement at this time as the case is still subject to live litigation.
“The Scottish Government continues to offer to provide a mediation service for affected tenant farmers and landlords in this case and we continue to urge those involved in this situation to use this service, which runs until 2018.”
