Proprietary Estoppel
Proprietary Estoppel
Proprietary Estoppel
LICENCES
Licences are not proprietary rights, they are personal. Therefore, they
are generally revocable. They are only irrevocable and binding if
coupled with a proprietary interest or via an equitable measure –
estoppel.
Types of licences:
PROPRIETARY ESTOPPEL
P estoppel means you are trying to stop somebody from enforcing their
rights against you.
There are 3 elements & 4 criteria that must be satisfied to raise an equity
(Inwards v Baker; Ashburn; Taylor Fashions):
1. Assurance
2. Reliance
3. Detriment
4. Unconscionability*
*The arisen equity may be satisfied in various ways and it’s up to the
court to decide how to grant relief to person who’s entitled to this
protection. The courts consider context, conscionability, expectation,
proportionality to determine what’s fair in the circumstances. It is at
this point satisfying the equity comes in – it’s intertwined almost with
establishing the equity, as the elements connect directly to the outcome.
It’s a holistic approach – Gillet v Holt.
- The imperfect gift cases – with families the contracts tend to get
forgotten
- Common expectation cases – like in Thorner, where there is
cultivated an expectation in relation to a piece of land.
- The unilateral mistake cases – rare. A neighboring landowner
mistakenly thinks they are entitled to do something but landowner
doesn’t correct them. So the landowner is standing back and
allowing someone to make a mistake to their benefit/ interest. This
is grounds for estoppel as you could have stopped them from acting
when you had the chance.
A. ASSURANCE
Forms of assurance:
The person bringing claim has to be certain what interest in land they
think they were promised cause scope of expectation has a causal
link to the remedy granted. See Thorner v Major.
UNCERTAIN ASSURANCES
IRREVOCABILITY
B. RELIANCE
C. DETRIMENT
There is a connection between the detriment you suffer and whether that
notionally amounts to the asset you are asking for. Financial detriment
is usually what is looked for. In Gillet, court considered whether working
for 80% less wage than you deserve for 30 years warranted inheriting the
entire asset and concluded that it did. The losses and gains will be
weighed up. More on detriment in Gillet (below).
DETRIMENTAL CONDUCT:
In Thorner, Major he was made to work for free and that is obviously
cash loss but what does that mean? If you work for free what is the
impact on your life, your family/ children – can you send them to private
school? Go on holidays? What does this mean to the quality of your life?
What is the consequence for 30 years? In Gillet, court weighed up power
relations between them. Holt was godfather of one of G’s children and
only sent that one to private school. He had an almost domineering
influence on Gillet’s life and it boiled down to money.
REMEMBER MAXIM: "He who comes into equity must come with
clean hands."
Due to misconduct of representee/applicant in Brynowen Estates Ltd v
Bourne (1981), the court refused to grant any award/ satisfaction
though an equity had arisen. She acted so badly before the court came
to trial – causing a nuisance at the asset and harassing people staying
there.
PROPORTIONALITY
PRIORITY
The priority rule is under s 116(a) LRA 2002.
OVERREACHING?
She left this essay Q. Hint that q for PE is exam question not problem?
Plus the in depth analysis in the seminar… hmmm:
Even after Thorner v Major (2009), the search for clarity and principle in
proprietary estoppel continues.’ Discuss.
To what extent does the current law on proprietary estoppel achieve a
satisfactory balance between certainty and fairness?
NAME FACTS ISSUE RATIO COMMENTS
Ashburn This case is now A contractual licence Some history:
Anstalt v authority on isn’t binding on
Arnold licences. Note: purchaser of land Orthodox position:
1989 the ratio on regardless of notice. Contractual licence
leases was CA setting record not enduring/
wrongly decided straight that licence is enforceable against
and has been just a personal right. new landlord/
overturned. incoming purchaser
“Down to this point we as licences are
do not think that there is personal interests
any serious doubt as to not proprietary.
the law. A mere Additionally, the
contractual licence to new landlord was
occupy land is not
not party to the
binding on a purchaser
contract – King v
of the land even though
David Allen & Sons
he has notice of the
licence.” 1916.
Certainty of
assurance:
M was promised the
farm – its huge and the
size fluctuated over
the 30 years.
Executors said it was
too uncertain/ not
consistent. But HL said
it’s like once the
equity arises the
asset crystallizes. So
whatever the farm is at
that moment is the
farm/ the transferred
asset. Neither M nor T
would have been
uncertain about what
the farm entailed
cause they both
worked on the field
together. No confusion
on their part. So the
extent of the interest is
confirmed once the
equity is formed.
Detriment:
“The detriment need
not consist of the
expenditure of money
or other quantifiable
financial detriment, so
long as it is something
substantial. The
requirement must be
approached as part of a
broad inquiry as to
whether repudiation of
an assurance is or is not
unconscionable in all the
circumstances...There
must be sufficient
causal link between
the assurance relied
on and the detriment
asserted. The issue of
detriment must be
judged at the moment
when the person who
has given the assurance
seeks to go back on it.
Whether the detriment is
sufficiently substantial is
to be tested by whether
it would be unjust or
inequitable to allow the
assurance to be
disregarded—that is,
again, the essential test
of unconscionability. The
detriment alleged must
be pleaded and proved.”
In respect of non-
financial detrimental
reliance, the effect of the
rupture in relations
meant that the woman
was no longer
constrained by the
difficult working
relationship with her
parents and she was free
to work where she
wished. (I believe this is
referring to the on and
off nature of her and her
parents relationship)