Blaney McMurtry
By Irvin Schein
March 4th, 2026
The recent decision of the Ontario Court of Appeal in Metske v. Metske provides useful guidance for those involved in succession planning for family businesses.
As the Court said at the opening of the decision:
“Some businesses remain in the family. Others do not. Business owners might muse about succession within the family unit. However, musings do not always give rise to enforceable promises.”
In this matter, Martin and Roseanne Metske built and ran a farming business for many years. Between 2003 and 2011, their son Tim worked on the farm. During that period of time, Martin told his son Tim more than once that the farm would be his someday.
In 2011, after an argument with his father, Tim moved out.
Vague comments by a father to a son about how “some day all of this will be yours” are not going to cut it. A transaction between family members must be documented as carefully and precisely as a transaction between arm’s length parties.
