Family homes: Proprietary estoppel

Question 1

What is a proprietary estoppel?

Answer 1

Where a party (B) seeks to assert a proprietary right to land belonging to another party (A) in circumstances where B has been lead to believe, by a promise, words or conduct and/or by acquiescence from A, that they (B) have or can expect to acquire an interest in the land.

Question 2

When do proprietary claims arise?

2 options

Answer 2

Option 1: ‘acquiescence’ case

B mistakenly believes that they have a right in land which is owned by A and, in reliance on that belief, act to their detriment in circumstances where A is aware of their mistake but does not attempt to correct it or prevent them acting to their detriment.

Option 2: ‘assurance’ case.

A assures B that they have or will acquire a right in relation to A’s property and, in reliance on that assurance, B acts to their detriment.

Question 3

What are the 3 elements of a proprietary estoppel claim?

Answer 3

1. An assurance made to the claimant.
2. Reliance by the claimant on the assurance.
3. Detriment to the claimant in consequence of their reliance

Question 4

First element: What is assurance?

Answer 4

The assurance must be a promise that the claimant has or will acquire a right in property owned by the defendant.

• does not need to be explicit, it can be inferred.
• ‘clear enough’
• if it would have been reasonably understood by the claimant in the context of their conversation.

Question 5

Second element: What is Reliance?

Answer 5

A causation requirement:

There must be ‘a sufficient link’ between the defendant’s assurance and the claimant’s detrimental conduct.

Does not have to be the sole cause but sufficient to be a cause!!!

ps: once reliance has been proven, burden of proof shifts to defendant.

Question 6

Third element: what do we mean by detriment?

Answer 6

detriment to the claimant in consequence of their reliance on the defendant’s assurance

Question 7

Why should we consider Unconscionability?

Answer 7

Meaning even if the claimant succeeds, their claim might not necessarily if the court considers that it would not be unconscionable for the defendant to dishonour the assurance

Question 8

What remedies are available when the claim succeeds?

Answer 8

• Transfer ownership of property to the claimant;
• Hold property on trust for the claimant;
• Grant the claimant a property right over their property (eg an easement);
• Grant the claimant a personal right over their property (eg a licence);
• Pay a sum of money to the claimant

PS! Disproportionality is likely only to arise ‘where the detriment is specific and short-lived, and in particular shorter than the parties are likely to have contemplated.’