Redfern Farm Services Ltd. v. Wright Michael and Kyle Wright and their father Wi

Question

Redfern Farm Services Ltd. v. Wright Michael and Kyle Wright and their father Willim Wright all carried on business as farmers in Manitoba. Each had separate farm property registered in their own name but they carried on the business of farming indiscriminately as to who owned what. They fed and pastured the animals together and carried on other aspects of their business together. The three operations were all quite intertwined. They did carry on the crop production aspects of their businesses separately, but that was only a small unprofitable part of the overall operation They also maintained separate herds of cattle and kept the profit for themselves when they were sold. Note that although the herds were separately identifiable they were fed, corralled and nurtured as one common herd. In response to questioning by a representative of Redfern Farm Services with respect to the grain operation the father said "I order the seed, I order the fertilizer, I order the spray, I order the day custom applicator, I talk to Darryl, I'm the one that does the crop rotations, I use everybody's fields as my own. I'm the one that pays the bills." The father bought the supplies used by all and owed $55,365.82 to Redfern which was not paid. Redfern sued all three. Are Michael, Kyle and William partners? What factors do the courts consider in determining whether a partnership exists? What are the consequences of a finding that there is a partnership relationship? Please answer these questions in case format. tt gatu i s Rvk 5

Explanation / Answer

Case: Redfern Farm Services Ltd. V. Wright

Premise: Wright Family used to farm indiscriminately, though having separate farms registered under each name. Their animals were fed and reared together. Most of their operations were intertwined.

The factors to be considered in determining whether a partnership exists:

The association of the Wright Family can be taken as a cooperative partnership.

As per partnership law, if a group is using a joint account to get resources or raw material procurement and asset and process division is not clear, the informal cooperation can be considered as a cooperative partnership.

Features of a cooperative partnership:

All these features fit in the Wright Family scenario. So the Wright Family can be considered as partners.

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