Estoppel Cases Flashcards

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1
Q

What are the requirements (and authority) for passive acquiescence estoppel?

A

Ramsden v Dyson: the defendant must allow the plaintiff to build on the defendant’s land under the mistaken belief that P owns the land, and must know P is labouring under this belief.

Mees: not easy to rationalise under the other headings of estoppel and it seems more to be an instance of where the equitable unfairness has arisen from a different source.

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2
Q

What are the judiciary’s attitude towards estoppel?

A

Hoyl Group Ltd v Cromer Town Council: Lewison LJ is of the opinion that the boundaries of estoppel are open and it resists being pinned down too tightly.

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3
Q

Do you look at each requirement of estoppel individually or do you take them all together ‘in the round’?

A

Gillet v Holt: you take them all in the round (they often overlap), and ask whether there is unconscionability throughout.

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4
Q

What are the four requirements of estoppel?

A

Assurance; Reliance; Detriment; Unconscionability (Gillet v Holt)

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5
Q

The assurance must be clear, but how strict is this test?

A

Walton v Walton: it must be clear, unambiguous, and seriously intended. But also note the difference between estoppel and contract: in the latter the obligation arises at formation, in the former it arises when the obligation is enforced. This will give the court the benefit of hindsight looking at subsequent acts - if there is detriment, a lack of clarity will not usually be fatal provided in the context it was clear enough (Thorner v Major)

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6
Q

What if there are a series of individually insufficient representations?

A

Thorner v Major: if, taken together, they amount to a clear representiation/promise then this is enough for the assurance limb.

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7
Q

What form must the promise take?

A

No particular form: Ives v High. This can be a promise to give ownership, or some property, in a piece of land now or in the future (Thorner v Major)

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8
Q

What are some examples of assurances?

A

Thorner v Major: possible to be implicit, but a high burden;
Flowermix: it can be a failed written agreement;
Gillett: can take the form of a unilateral or a mutual promise

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9
Q

Is it possible to have a pre-contractual estoppel arising?

A

Crabb v District council: where A and B were negotiating over a piece of land, A suggested to B that B would get a right of way when he sold the land. Even if more negotiation was required, the steps A had taken (ie a gate) led B to suffering detriment, selling the land, but inadvertently landlocking his own land when A backed out.

Cobbe v Yeoman’s Row: in commercial settings it is much more likely that B will know he is not getting property rights (subject to contract), whereas in domestic (thorner) B is much more likely to assume he is getting an unqualified right. Crabb is different in that B was misled by the gate being put in, whereas B in Cobbe knew at all times he wasn’t getting a proprietary right.

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10
Q

How is the law applied to domestic circumstances differently to commercial ones?

A

In domestic cases (LN) it is more likely that the courts will find assurances as it is unreal to suggest they should have made a contract. In commercial cases this is less of a concern and the interests of certainty require B to be misled as to the granting of a proprietary right (ie, in Crabb) with no more negotiation (gate), rather than just the hope of a future proprietary right.

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11
Q

How is the estoppel assessed?

A

Thorner v Major: Objectively

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12
Q

Does it need to be for a specific property right, aka a lease?

A

Thorner v Major: no it doesn’t, however in Cobbe v Yeoman’s row there was no assurance as to B getting a property right as it was only ‘subject to contract’, binding in honour, and B knew he would have to negotiate the contract first.

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13
Q

What are the requirements of certainty?

A

Thorner v Major: the right has to be certain enough to indentify the land at least. Here, the farm ‘as existing from time to time’ was enough.

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14
Q

What are the requirements of ‘reliance’?

A

The claimant must alter his or her behaviour in response to the assurance of the defendant. If there is detriment then reliance is presumed (Greasley v Cooke).

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15
Q

What if C would have acted as they did even if the promise had not been made?

A

Wayling v Jones: the test was altered here because C had suffered considerable detriment in reliance on the promise. The test they applied was: ‘would C have worked there even if D had told him he was breaking his promise’. This is a bit different and brings in some other considerations (like trust).

Cooke: odd test as not equivalent, cf Coombes v Smith where a wife said she would have moved in with D even if there had been no promise. McFarlane thinks it only applies to domestic cases.

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16
Q

Does the reliance need to occur as a sole result of the promise?

A

No, mixed motives are okay (Ottey v Grundy; Chun v Ho); if the detriment predates the assurance then there might be difficulties unless it can be shown that the assurance dates back before in implied form.

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17
Q

How must the detriment be connected to reliance?

A

It does not need to be connected, detriment is enough provided that but for the operation of the proprietary estoppel P would suffer a loss.

Gillet v Holt: examples of detriment include not seeking a new job; carrying out existing duties; taking no steps to secure future income.

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18
Q

What if the claimant has also received benefits in return?

A

Henry v Henry: the question is whether the benefits outweigh the prejudice. Here, the fact that the claimant was the only one to take up his mother’s offer to work the farm and get a share in it suggested this. Also, the claimant had worked the land for 30 years, and even if he got profits from the sale and rent it didn’t matter.

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19
Q

Does the detriment have to be above a de minimus level?

A

Clibbery v Century: yes, recording tapes of horse-racing is not enough.

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20
Q

What are five examples of detriment which is valid?

A
Emotional and physical support (Campbell v Griffin: nursing care);
Giving up an opportunity (Dugdale);
Better prospects (Gillett);
A career (Ottey);
Other accommodation (Parker v Parker).
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21
Q

Is it possible for the detriment to be cumulative?

A

Yes: Jennings v Rice.

22
Q

What role does unconscionability play?

A

It seems like it has to run through each element, promise; reliance; detriment. (Cobbe, Lord Walker)

23
Q

How does Dixon rationalise estoppel?

A

Dixon regards estoppel as a mechanism designed to remedy a lack of formalities. However, to avoid this going too far and undermining formalities it is necessary to limit it by requiring the promise/implied promise to be that the other did not need to comply with formalities.

24
Q

What is the basis of unconscionability in Yeo v Wilson?

A

It is on a general, broad brush approach to fairness. However, this is highly discretionary and unpredictable (Lightman - not liking the person).

25
Q

Is revoking promises a good basis for why an instance might be unconscionable?

A

No, firstly, it is likely to be met in basically every estoppel case (hence why the came to court), and secondly it cannot explain gazzumping.

26
Q

Could a possible basis be getting misled as to formalities? (Dixon)

A

It could, but it might be too narrow for most domestic cases and although it would pin the doctrine down, this is not what the courts seemed inclined to do (Hoyl).

27
Q

Are the three requirements enough by themselves?

A

No, there needs to be something more (Yeoman’s Row), unless you incorporate the added element into the test for each individual element.

28
Q

Is the equity of estoppel a property right?

A

Yes, under s116 of the LPA 2002, though note that it is also comes under the priority rules. Eg, Lloyd v Dugdale.

29
Q

What is the award of the equity of estoppel designed to do?

A

The equity of estoppel is the ‘minimum necessary to do justice between the parties’. (Jennings v Rice). This can range from a monetary payment, personal right, or property right (Kinane v ali-Kintah; equitable mortgage).

30
Q

What are the limits on the award?

A

It should not extend past the assurance (Davies v Davies); but it can meet it (Moore v Moore), and is desgined to alleviate the unconscionability (Jennings v Rice).

31
Q

Will the remedy by discounted if the claimant has already received a benefit?

A

Yeo v Wilson: it can be refused if C has acted unconscionably; and may take into account benefits already received (Campbell v Griffin).

32
Q

How is the money award calculated?

A

Jennings v Rice: it is not clear and there is some tension between the expectation in response to the promise (see contract-like estoppel, Culliford), and detriment. In this instance, the claimant wanted £1.5 milllion, whereas the court was only willing to award him £200,000 for his lost expenditure for providing full time nursing care.

Because of the lack of formalities, it is rare the award of damages will match the expectation.

33
Q

What is the relationship between detriment and expectation?

A

We do not know and it has not been resolved. In Davies v Davies it was suggested the ultimate test is the minimum necessary to do justice to the parties. Nonetheless, the court does not have unlimited discretion (‘it is not a portable palm tree’).

However, tacit support (as a working model) was given to the suggestion of balancing the two against one another, taking into account the amount of detriment, degree of expectation, and the period between detriment and expectation. Also, if the detriment is removed this will normally remove the unconscionability.

34
Q

The clarity of the assurances also plays a role in the award given.

A

In Davies v Davies, Gillet v Holt and Thorner v Major were distinguished on this basis. In those cases the representations were persistent and clear, whereas here they were inconsistent (being shown the will was merely the intent at the time), and unclear, changing over time.

She did suffer detriment, but it was not shown she had ‘repositioned her entire life around them’. Also, the fact her parents had contributed to the breakdown was also irrelevant as this was the case in most instances.

The judge therefore gave her a rough award for her detriment working. This was a fraction of what she had originally claimed.

35
Q

What is the root of assessing unconscionability damages?

A

It is, again, unclear. The best view is probably just that it connects to whatever is producing the unconscionability, so in some cases it might be holding D to his word in honour, but in others it could be met by meeting P’s reliance. Also, it should not exceed the expectation as any detriment above this is probably not unconscionable (as in Baker v Baker).

36
Q

Yaxley v Gotts

A

A entered into an agreement whereby B would renovate his house and in exchange B would get a share in the property. However, A secretly then went ahead and sold it to his son.

Although it was a void agreement (oral, s2 LPA), it could still be enforced by a constructive trust (met on the same ground as PE). The parties had come to agreement and one had relied on it (Lloyd’s Bank v Rosset).

Clarke LJ thought s2 was meant to deal with part performance and could still allow PE.

37
Q

Suggitt v Suggitt

A

Although the son (C) had received significant benefits working on the farm, the element of detriment was enough.

Further, it interprets Jennings v Rice differently. Rather than seeing ‘proportionality’ always adjusting expectation, Arden LJ saw it as only negativing expectations which were grossly disproportionate (or uncertain, James v James), otherwise they would be fully awarded. Hence the promise for the farm was awarded by giving the son the farm.

38
Q

How does equity of estoppel work when the representor has no property right?

A

Scott v Southern Pacific: The equity of estoppel is ‘fed’ by completion. Lloyd’s Bank v Rosset overruled. Even if the contract is specifically enforceable the promisor has no legal right to carve an equity out of until they receive the deed on completion. Before then they might ‘never get the land’. Again, looking at substance not form (but inconsistent - must be looking at the right to register the land).

39
Q

Lloyd v Dugdale

A

D moved into I’s land, spent lots of money on it but was persuaded to do so because I ‘was a man of his word’. The court found that the statements had been made to D in his personal capacity so that was not an issue. However, it did not act as an overriding interest as D was only occupying the land in his professional capacity.

Note, taking the land merely with knowledge of the right was not enough (applying the Ashburn style of CT).

40
Q

Culliford (CICT)

A

This has had added support in Jennings v Rice. Pawlowski, this seems to be based on how clear the expectation is. When it is simply a promise to deliver a house then it seems as if it will simply be given effect to (Pascoe v Turner). However, when the expectations are unclear (like a ‘home for life’), then they merely form the starting point and are subject to deduction.

41
Q

Herbert v Doyle (Incomplete Contract Case (CICT)

A

This case was involving a swap of land, albeit one which was incomplete. It was held that the assurance was not clear enough. The question is whether there is sufficient certainty: have they negotiated fully, have they left it to be purely formalised in a later document, or did they not expect it to be fully effective immediately/left further things to be decided, leaving the agreement uncertain?

“(1) if the parties intend to make a formal agreement setting out the terms on which one or more of the parties is to acquire an interest in property,

(2) or, if further terms for that acquisition remain to be agreed between them so that the interest in property is not clearly identified,
(3) or if the parties did not expect their agreement to be immediately binding, neither party can rely on constructive trust as a means of enforcing their original agreement.”

Incomplete contract cases are therefore still valid for proprietary estoppel. Cf Matchmove

42
Q

Gillet v Holt

A

(1) Look at estoppel ‘in the round’
(2) No need for an irrevocable promise;
(3) minimum equity to do justice was to trasnfer the farm (note he had totally reorganised his life around this)

Cf Dixon’s Comment and view for the narrower view. Leads to some problems:

“Admittedly, it might be difficult to make this inference here because of Holt’s known intention to use formality (a will), but with a fresh wind we might just manage the conclusion that Holt’s intention to use a will did not exclude the inference that he had promised the land even if he did not.”

If purely detrimental reliance then it seriously undermines contracts.

43
Q

Ghazanni v Rowshan

A

Part of the basis for the incomplete contract being upheld was that there were no further terms to be agreed - indeed, they had actually gone ahead with performing the transaction and relying on it (ie, by moving in and renovating). The remedy was to put G into the position he would have been in had it not been for the broken promise. This amounted to essentially fulfilling his contract.

Has reconciled Yaxley v Gotts (incomplete contract) and Cobbe by saying Cobbe was different because it was only binding in honour.

44
Q

Dowding v Matchmove (incomplete contarct)

A

B enters contract with A (never signed) and B pays A for the land. A claims he has a half share.

S2(1) does not exclude PE as different mischief. The main thing here is that they intended (not expected) for the agreement to be binding immediately without future written terms, and that they just regarded future contract as a ‘technicality’ having no effect on the binding-ness of the contract - any incompleteness or uncertainty could be completed by finding implied terms. They just needed to intend to make a legally binding arrangement. The requirement of certainty in Doyle was distinguished as not a separate part of the test and merely describing the facts of Cobbe.

NB: Dixon argues this is another case where the individual was a ‘man of his word’ (aka Yaxley) and thus had implictly misled B into thinking formalities were not required. Bit weak but ok. Also, CICT a bit weak:

“A CICT seems to be getting used to go around the formality requirements. However, they are a little forced as they involve arguing the claimant, after gaining the property, had their conscience affected and had a common intention to give a property right. This is far away from the usual application in which the claimants have an ongoing relationship involving conduct and words, rather than a business-like transaction involving sale of land. “

Boncey & Ng question whether it is realistic to disregard Arden LJ’s consideration of Cobbe as a matter of precedent rather than specific requirements. This is on the basis they did not analyse Cobbe, namely it’s similar features: property which was pre-owned, and whether it was another instance in which it could be said they only intended to get a property right from the contract. Is it fair to say B had been misled as to getting an informal property right, or did he know he needed a contract?

Cf Claimant being allowed to move in early.

45
Q

Dobson v Griffey (CICT)

A

No CICT as B hasd been reimbursed for all her expenditure and there had been no relationship of a transactional nature (as in Culliford ‘let’s combine forces’). Any expectation B might have had did not spring from anything A did or said.

Further, any detriment could be explained by her desire to have a nice home, rather than on the basis she was doing it to gain a share in the property. She did it for the children, there was no need for a quasi-commercial relationship.

46
Q

Davies v Davies

A

Countervailing benefits are relevant in (A) removing detriment (v rare), (B) showing how realistic the expectations of the relior are; (C) adjusting what is equitable and working out what the detriment was in reliance on (promise or benefits?). Also, note that in Thorner v Major the period to look abck from is where the promise is broken (ie, taking into account subsequent events after the promise).

Note the multiple promises, some expired, and the fact B had not positioned her life around the promises either.

47
Q

Eves v Eves

A

A couple, one partner told the other he would not be putting her on the register becasue she was under 21. In reliance she fixed the house up.

48
Q

Law Com comment on Estoppel

A

Law Commission noted that “to demand proof of an intention to share the beneficial interest in the home can be somewhat unrealistic, as people do not tend to think about their home in such legalistic terms”

49
Q

Hayton Criticism

A

Hayton has recognised a serious problem with transparency and overlap between CICT and proprietary estoppel. Land law requires clear rules in order to ensure certainty and efficiency

50
Q

Differences between equitable estoppel and CICT

A

An interest under a trust is not a discretionary award it is an entitlement. Likewise, the remedy from estoppel only arises when there is a court order.

They both need reliance, but CICT needs a common intention whereas estoppel does not. There is also a much greater focus on estoppel becasue it can arise in a much wider number of circumstances, whereas the CICT tends only to arise in domestic instances.