Cases - Swift v Dairywise Farms Ltd
Record details
- Name
- Swift v Dairywise Farms Ltd
- Date
- [2000]
- Citation
- 1 AII ER 320
- Legislation
- Keywords
- Milk quota
- Summary
-
The facts of this case are complicated. The case involved two sister companies trading in milk quota and revolved around the extent to which such quota could be treated as security for a loan. In short, loans were made by Dairywise Ltd to farmers whose milk quota was transferred to Dairywise Farms Ltd as security for the loan. After Dairywise Ltd went into liquidation, its liquidators brought proceedings against Dairywise Farms Ltd, contending that Dairywise Farms Ltd held the milk quota for the benefit of Dairywise Ltd.
The decision at first instance of Jacob J considered the juridical nature of milk quota. The judge held that milk quota constituted property within the definition of section 436 of the Insolvency Act 1986 and was capable of forming the subject matter of a trust between Dairywise Ltd and Dairywise Farms Ltd.
The decision at first instance was then the subject of an appeal to the Court of Appeal. The Court of Appeal (which included Chadwick LJ, the judge in Faulks v Faulks) did not adopt the analysis or reasoning of Jacob J, in short determining the issues as an interlocutory matter based upon the contractual arrangements between Dairywise Ltd and Dairywise Farms Ltd.