Agricultural Law Netletter - January 21, 2017 - Issue 364

HIGHLIGHTS

* A Justice of the Supreme Court of British Columbia has conducted an in-depth review of the law concerning the formation of partnerships in relation to a proposed partnership to finance and develop an Abbotsford, British Columbia farm for the purpose of growing medical marijuana. The Court concluded that although the parties intended to enter into a written partnership or joint venture agreement, they had not reached a consensus with respect to the essential terms of the agreement, including when it would commence, their respective roles and responsibilities, how revenue and expenses would be accounted for and how they would share profit and losses. Although there had been discussions, they never actually commenced carrying on any business. A Vancouver businessman who had proposed a partnership to the owners of a small Abbotsford farm in financial difficulty, was granted judgment for funds he had advanced to pay down the farmer's mortgage but not for funds expended to improve the land for marijuana production. The farmers' actions for breach of fiduciary duty and breach a duty of good faith, as well as damages resulting from their loss of their farm in a foreclosure action were dismissed. (Ficocelli v. Henderson, CALN/2017-032, [2016] B.C.J. No. 2600, British Columbia Supreme Court)

NEW CASE LAW

Ficocelli v. Henderson;

CALN/2017-032,

Full text: [2016] B.C.J. No. 2600;

2016 BCSC 2295,

British Columbia Supreme Court,

W.J. Harris J.,

December 7, 2016.

Partnerships -- Proof of Essential Elements of the Partnership Agreement.

Michael Ficocelli ("Ficocelli") sued Brian and Nancy Henderson (the "Hendersons") for monies he paid on a mortgage against the Hendersons' farmland, and with respect to expenses he incurred improving buildings and the Hendersons' land to accommodate a proposed legal marijuana grow operation.

The Hendersons counterclaimed against Ficocelli, for breach of an alleged partnership agreement and for breach of alleged fiduciary duties and a duty of good faith.

In October of 2012, Ficocelli placed an advertisement on craigslist seeking a partner to develop a rural property. Ficocelli was a Vancouver businessman who owned an autobody shop and had a marijuana dispensary. Ficocelli was interested in locating rural properties which could be leased to marijuana growers for the purpose of supplying his business.

The Hendersons owned and resided on a 10 acre parcel in Abbotsford.

The Hendersons responded to Ficocelli's...