Lords decides on quotas

Judgment is pending in the House of Lords in a case focusing on the status of milk quota allocations attached to agricultural property if it is repossessed. A former Welsh farmer has challenged a bank's rights to benefit from quota allocations when it took possession of his property. After the farm had been charged in favour of the bank the farmer was allocated a 920,000 litre milk quota but ultimately his dairy herd was sold by a receiver appointed by the bank. The bank then took possession, registered the quota in its name and entered into temporary "leases" of the quota, receiving around #349,000 over a six year period. But the farmer claims the bank's charge over the farm did not extend to the quota and that the bank is accountable to him for as much of the sale price as was attributable to the quota and for the proceeds of the quota leasing.