Implied Trusts: Trusts of the family home Flashcards

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1
Q

Preface

A
  • Note that ‘family homes’ here applies to cohabitees. Married partners and CPs have their own law
  • Also note that this might be in a weird order bc the elements repeat themselves :///

We are only concerned here with less formal relationships
* Both common intention constructive trusts and proprietary estoppel are considered in this deck - both are ways to show proprietary interest

If confused - watch consolidation video

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2
Q

How is ownership of property decided for divorce/ dissolution cases?

A

With statutory discretion under Matrimonial Causes Act or Civil Partnership Act - court allocates fairly between the parties

So rest of this deck is not talking about married/CP couples, but cohabiting couples

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3
Q

Can the court reallocate property rights with cohabiting couples in the same way they can reallocate property rights on divorce/dissolution?

A

No - there is no ‘common law marriage’ nor equivalent statutory provisions applicable to a breakdown of relationship of cohabitees (hence why beneficial ownership is so important!)

Nor is there anything for third parties e.g. mortgagee

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4
Q

Who has legal ownership of a property at law?

A

Whoever holds the legal title; registered as legal owner at Land Registry

May be sole or joint owners

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5
Q

In what 2 circumstances will disputes re the ownership of the property arise?

(For cohabitees!)

A
  1. Where there is a sole owner - legal title registered in name of one party but other claims beneficial interest in property
  2. Where there are joint owners - legal title to property registrered in name of both parties but no declaration re beneficial interest + claimed that the parties are not beneficial joint tenants

For both, trusts will determine the beneficial ownership of the home

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6
Q

Recall (land law), what is the only way the legal title to land can be held?

A

Either a sole legal owner or joint tenants (cf beneficial title which can be held as joint tenants or tenants in common)

I.e. one person holds legal title or multiple do jointly

Legal owner can hold legal title in any of following ways:
* As full and beneficial owner (no separate equitable title)
* On trust for a sole B
* On trust for more than one B as joint tenants
* On trust for more than one B as tenants in common in equal shares
* On trust for more than one B as tenants in common in unequal shares

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7
Q

What will the following look like?
1. A holds land on trust for A and B as equitable joint tenants
2. A holds land on trust for B as sole beneficial owner
3. A holds land on trust for A and B as tenants in common in equal shares
4. A and B hold land on trust for A and B as joint tenants
5. A and B hold land on trust for B as sole beneficial owner
6. A and B hold land on trust for A and B as tenants in common in 80/20 proportion

I.e. who holds title and how

A
  1. A holds land on trust for A and B as equitable joint tenants = A has legal title, A and B have equitable title as joint tenants
  2. A holds land on trust for B as sole beneficial owner = A has legal title, B has equitable title
  3. A holds land on trust for A and B as tenants in common in equal shares = A has legal title, A and B have equitable title of 50% each
  4. A and B hold land on trust for A and B as joint tenants = A and B have legal title, A and B have equitable title as joint tenants
  5. A and B hold land on trust for B as sole beneficial owner = A and B have legal title, B has equitable title
  6. A and B hold land on trust for A and B as tenants in common in 80/20 proportion = A and B have legal title, A and B have 80% and 20% of equitable title, respectively
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8
Q

How will legal owners usually clarify beneficial ownership and in what form?

A
  • Through declaring an express trust - written evidence of which will determine beneficial interest
  • TR1 form (needed to transfer legal title to land) includes provision for specifying equitable ownership

But this is not compulsory!

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9
Q

What is the presumption if people do not complete the provision for specifying equitable ownership?

I.e. no express trust

A

That beneficial ownership of the land mirrors legal ownership (because equity follows the law) - for example where legal title held as joint tenants = equitable title held as joint tenants

Stack v Dowden

But this can be problematic for cohabitees who must rebut this presumption to determine their ownership e.g. A and B live in a house registered under A’s name with no express trust - as equity follows the law, only A holds legal and equitable title; B must rebut this presumption

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10
Q

How do purchase money resulting trusts apply to family homes?

A

They do not!

Were previously used, and meant that beneficial ownership reflected couple’s respective contributions to purchase price only (which is why they are no longer used; would be unfair to subject family homes to these kinds of rules especially where traditionally the man would be registered holder of legal title and woman left with nothing unless they could show they contributed to the house)

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11
Q

What is used to determine beneficial ownership in the case of family homes and how do they work?

Family homes includes cohabitees (not married or CP)

Referring especially here to cases where beneficial ownership is disputed e.g. breakdown of a relationship, death

A
  • Common intention constructive trusts (to reflect common intention of the parties to share equitable ownership)
  • Court will consider wider range of factors than only monetary contributions to the home (‘holistic approach’ - Stack v Dowden) to decide whether beneficial ownership differs to legal ownership

More flexible; considers more than just monetary contributions!

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12
Q

If there is an express trust, can a common intention constructive trust be used?

E.g. E and F live in house registered in joint names with express trust declaring they are tenants in common in equal shares

A

No, the express trust will be conclusive

I.e. one party cannot argue they have a larger share of property than in express trust (but proprietary estoppel may still be used)

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13
Q

In what 2 ways can the ‘intention’ in ‘common intention of the parties’ be established?

A
  1. Express (express statements as to ownership)
  2. Inferred (determined objectively based on the circumstances)
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14
Q

What 2 things does the holistic approach of Stack v Dowden determine?

A
  1. If the equitable interest is different to the legal interest; and (if so)
  2. How the parties’ respective interest should be quantified

Equitable interest being different to legal interest is important because it can show that a party has an interest even if they do not have legal interest (as they did not pay for it etc.) or that a party has a different equitable interest than a joint tenancy (in which case they might have a smaller or larger interest)

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15
Q

What is the starting point for equitable and legal title?

Stack

A

Equitable title reflects legal title, so…

  • Sole legal owner is presumed to be the sole beneficial owner
  • Joint legal owners are presumed to be equitable joint tenants
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16
Q

In sole legal ownership cases, what will an individual seek to establish and what 2 things is proof needed for?

Stack

A

An individual will seek to establish that they have acquired an interest under a common intention constructive trust, requiring proof of:

  • A common intention that they should have a beneficial interest; and
  • Detrimental reliance upon that intention

E.g. A and B live in house registered in A’s name, no express trust so A holds legal and beneficial title = B must show they have acquired an interest

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17
Q

In joint legal ownership cases, what will an individual seek to establish and what 2 things must they show?

Stack

A

An individual will seek to establish that they are not beneficial joint tenants by rebutting the presumption with reference to:

  • Common intention of the parties; and
  • Detrimental reliance upon that intention

E.g. C and D live in house registered in joint names, so both hold legal and equitable title = either must prove they are not beneficial joint tenants (so survivorship will not apply)

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18
Q

What is the difference between cases of sole and joint legal ownership that an individual will want to prove?

A
  • Sole = that they have acquired an (equitable) interest
  • Joint = that they are not beneficial joint tenants (and are actually tenants in common)
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19
Q

How can the court establish actual intention?

A

Based on the whole course of conduct whether express or inferred

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20
Q

What does it mean that intention can be ambulatory?

A

A beneficial interest can be established/presumption of joint tenancy rebutted after acquisition (if circumstances change)

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21
Q

What must happen after common intention and detrimental reliance has been established?

A

The interests of the parties must be quantified by taking into account the whole course of conduct

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22
Q

What is the order in which intention re quantification is considered?

A
  1. Express intention as to quantification (and if not…)
  2. Court attempts to infer an intention based on conduct of the parties
  3. (As a last resort) If the court cannot ascertain the actual intention of the parties as to quantificatino of their shares, the court will impute an intention for ‘fair shares’ based on whole course of conduct
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23
Q

What is the two step approach to determine beneficial entitlements in joint legal ownership cases?

FROM HERE: JOINT LEGAL OWNERS

Consider doing sole legal owners first as order was wrong way around

A
  1. Rebutting the presumption - a) did parties have common intention to hold property as other than joint tenants and b) did the C act to their detriment in reliance on that common intention?
  2. Quantification - as the parties are not joint tenants but tenants in common, what are their proportions?
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24
Q

Must the presumption be rebutted in favour of a tenancy in common in equal or unequal shares?

A

Can be either…

  • May argue for tenancy in common in equal shares for cases involving dispute of beneficial ownership of land after death of one legal owner, as for share of property to pass to person’s estate, they must be tenants in common
  • More common to argue for tenancy in common in unequal shares for cases where a couple have separated and disputing their entitlements to the home - one of both might argue for greater than 50% share

(This is quite contextual but main point is that it can be rebutted in favour of either)

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25
Q

What factors were included in the non-exhaustive list for evidence that can be adduced to rebut the presumption that parties were not intended to be equitable joint tenants?

I.e. evidence of shared intention

A
  • Advice/discussions parties had
  • The reason that legal title was registered in particular names
  • The purpose for which parties acquired the house
  • Nature of relationship
  • Whether parties have children
  • How house was financed
  • How parties arranged other finances and divided responsibility of household expenses
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26
Q

Who must adduce the evidence and how heavy is the burden of rebutting the presumption and what type of facts will it require?

A
  • Is for the party seeking to rebut presumption to adduce evidence
  • Is a heavy burden requiring unusual facts

Not clear what facts will be deemed ‘sufficiently unusual’

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27
Q

Is greater weight attributed to any of the factors over another? What evidence will be the strongest/best?

A

Not necessarily - but the court is looking for actual intention of the parties, so evidence re express agreements or discussions as to beneficial ownership will be the strongest/best

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28
Q

What is of particular importance in the absence of express discussions?

A

Financial factors!

Even though this could reach same conclusion as using resulting trust analysis

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29
Q

Are the principles of detrimental reliance the same for joint name cases as it is for sole name cases?

Will be discussed more later

A

Generally - only difference being that in joint name cases the detriment is reliant on the parties’ common intention that interests should be other than joint

Cf sole name cases, common intention of shared ownership

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30
Q

What is taken into account when quantifying the interests of the parties?

A

The whole course of conduct (as with step 1)

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31
Q

What intentions will be relevant in quantification and which factors are taken into account?

Same as earlier card

A
  • Express/inferred intention (to ascertain actual intention) is best, but as a last resort courts will impute an intention for fair shares based on whole course of conduct
  • Same factors taken into account as step 1, express agreements/discussions best evidence, and financial factors if not
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32
Q

What happened in Stack v Dowden?

Example of how presumption is rebutted in exceptional cases

A
  • Dowden given 65% share and Stack 35% share in a home they owned as joint legal tenants
  • Couple in a relationship for 27 years whilst raising four kids, had purchased shared home in joint names and contributed unequally to deposit and mortgage (otherwise kept finances separate)
  • Made separate bank accounts/investments throughout relationship; this financial independence was held to be indicative that they did not intend a beneficial joint tenancy or to have equal shares in the house
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33
Q

If one party takes entire financial burden of a house, is this enough to rebut the presumption of joint beneficial ownership?

A

No, unequal financial contributions are not enough and further evidence is required!

Fowler - man paid deposit, all mortgage payments and all direct outgoings - was unable to rebut presumption of joint beneficial ownership

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34
Q

When can financial circumstances rebut the presumption?

A

If the purpose of the acquisition suggests as such e.g. Adekunle - mother and youngest son bought house in joint names and had to be registered on the mortgage (as mother unemployed and could not obtain mortgage alone) - the presumption was rebutted on basis that primary purpose of acquisition was a home for the mother even though son also lived there and contributed to mortgage. Was no intention they should be beneficial joint tenants especially as woman wanted all sons to benefit from her only significant asset (her share in the house) rather than passing straight to her son on survivorship

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35
Q

What does it mean that intention can be ambulatory?

Jones v Kernott

A
  • It is possible for the common intention of the parties to change over time; that parties had common intention to hold property as joint tenants when first acquired but that intention changed at a later date (e.g. end of relationship)
  • I.e. presumption (of mirroring) can be displaced by evidence that common intention was different at time of acquisition or that parties formed a different common intention later
36
Q

What does it mean for interests in the property to ‘crystallise’?

A

At the date the intention changes, their interests in property crystallise and subsequent events (e.g. capital growth of land) are considered when quantifying respective interests

37
Q

What happened in Jones v Kernott?

A
  • Property purchased by J and K in joint names - deposit paid for by J and mortgage in joint names - contributed jointly from 1985-1993
  • Separated in 1993 and split a joint life assurance policy equally; K used to buy new home whilst J used to pay mortgage on property which she lived in for 14.5 years paying all expense herself (K made no further contribution to house or kids meaning he could buy his house)

Held that:

  • At acquisition they intended to share jointly
  • The separation alone was not enough to infer a change to common intention
  • Later action in cashing in policy + prolonged absence of K from home + lack of contribution was evidence they no longer intended to share assets equally
38
Q

What did Jones v Kernott decide in terms of how common intention is deduced and what court should consider?

A

Common intention is deduced objectively from conduct; court should consider what each party would reasonably have understood to be actual intention of other based on such conduct

39
Q

What did the court decide re quantification in Jones v Kernott and why?

(Using this case as an example bc it’s quite specific)

A

J received 90% share of house, K received 10%, because…

  • Court inferred that couple intended for K’s interest to crystallise upon moving out as this is when he stopped contributing to mortgage and parties divided life assurance between them
  • He was able to fund purchase of own property through no longer contributing to shared house (or maintance of children!)
  • K could have sole benefit of capital gain on his property, leaving J to have sole benefit of any such gain on formerly shared home
40
Q

What is meant by imputation?

A

Where the court cannot infer the intention of the parties, they must impute an intention to the parties based on “what their intentions as reasonable and just people would have been had they thought about it at the time”

41
Q

What is the significant difference between inference and imputation and when should each be used?

A
  • Imputation can only occur at the quantification stage and not when rebutting the presumption of joint tenancy
  • Otherwise primary aim is to infer intention of parties based on whole court of conduct and non-exhaustive list of factors and leave imputation as a fall back

Has been argued there is little practical difference otherwise!

42
Q

Who will be the beneficial owner where there is a sole legal owner and an absence of an enforceable express trust over the property?

FROM HERE: SOLE LEGAL OWNERS

A

The sole legal owner will be the sole beneficial onwer unless other person is able to establish interest under common intention constructive trust

E.g. person bought home before they entered into relationship or another reason why it was appropriate to only register house in their name

43
Q

What is the starting point in all family home cases?

Applies to sole and joint

A

Equity follows the law; if land is held by a sole/joint legal owner(s), they are also the sole/joint legal owner(s) unless there is an enforceable trust over the property

44
Q

What is the two step approach to determine beneficial entitlements in sole legal ownership cases? When can imputation not be used?

A
  1. Establishing an interest - a) did the parties have a common interest for the non-legal owner to acquire a beneficial interest and b) has that person relied on this to their detriment?
  2. Quantification - if the non-legal owner can establish an interest, what is the quantum of that interest as a proportion of the property? (can only impute here)
45
Q

What are the 2 routes to a common intention constructive trust?

(This is from sole legal owner element but think it applies to both)

A
  1. Evidence of an express common intention as to shared ownership of property followed by detrimental reliance by the non-legal owner
  2. The court infers common intention from parties’ conduct again followed by detrimental reliance (where there is no express common intention)

Court cannot impute at this stage

46
Q

How can the non-legal owner demonstrate common intention to acquire an interest in the land?

A

Common intention can be ascertained in light of whole course of conduct

See non-exhaustive list from earlier - applies to both sole and joint

47
Q

Even though holistic approach means the court is required to take into account wide range of factors, what remains the best evidence of common intention?

A

Express agreement/discussions regarding ownership of house

48
Q

Are express statements referring to shared occupation enough?

E.g. “family home”, “benefit both of us”, “you will be looked after”, “your home too”

A

No, must refer to shared ownership e.g. “half yours”, “50:50”

  • Not “family home”, “benefit both of us”, “you will be looked after”, “your home too”
49
Q

Can common intention to share beneficial ownership be inferred from the legal owner providing an excuse (as to why their partner may not be jointly registered as legal owner)?

A
  • Not where the excuse is made to avoid having an argument rather than to prevent partner obtaining intended interest in shared home
  • But “you’re too young” (as an excuse that partner under 21 could not own property) and “it’s your divorce” (as an excuse that sharing legal ownership would prejudice partner’s divorce) have been accepted in case law
50
Q

How does the court apply the holistic approach to inferring common intention in sole legal ownership cases?

A

Takes a restrictive approach…

51
Q

Are household duties/caring for family of great relevance when inferring common intention?

A
  • Often limited relevance as this has to do with paties making lives together and not intention for ownership of property - even where one gives up career or a woman works without pay
  • But has been awarded in a case of an abusive and controlling relationship even though woman’s contributions to house ‘did not amount to much’ (awarded 25% share)
52
Q

Will indirect financial contributions or improving the property be capable of inferring common intention?

A
  • Has been held that paying family expeses should be considered where it enables other party to pay mortgage
  • Was considered in Stack that improvements which add substantial value to the property would be capable of creating interest - but this has been rejected even where a woman has given up job and made improvements to house
53
Q

How detrimental must the reliance be once the relevant common intention has been established?

A

Once common intention is established, any act done by them to their detriment relating to the joint lives of parties is sufficient

Has otherwise been held to be conduct which was inexplicable unless they had an interest in the house

See examples

54
Q

What are some examples which have and have not been considered to amount to detrimental reliance?

A
  • Detrimental reliance = heavy DIY, renovations to house, payment of substantial expenses inc payment of mortgage (would not have done without an interest in home)
  • Not detrimental reliance = decorating, giving up work to look after children, playing ‘traditional wife’
55
Q

What is the framework for quantifying the size of the non-legal owner’s interest once a common interest trust is established?

A
  1. Evidence of express common intention will be conclusive
  2. Without express, court should strive to infer common intention
  3. If not possible, they may impute an intention for ‘fair sahres’ in the ‘whole course of dealing’
56
Q

Is imputation available at both acquisition of an interest and quantification stages?

A

No - only quantification stage

I.e. court cannot impute an intention to find a common intention that interest was acquired

57
Q

Will ‘somewhat arbitrary’ shares be permissible?

A

Yes - court entitled to impute with the material available

Aspden - investment of £65-70,000 and work carried out could amount to 25% share in home

58
Q

Will the court consider factors like an abusive relationship when ascertaining the share of the non-legal owner?

A

No - court is not concerned with redistributive justice and ‘fair shares’ will be ascertained only in light of parties’ dealings with property; is not role of the court to reallocate property based on other matters which have no link to acquisition of property

Graham-York - abusive and controlling partner received 75% share, appeal wanted only 50% but court refused on basis of this having no link to acquisition of property

59
Q

What is the starting point in sole legal owner cases?

A

The sole legal owner is the sole beneficial owner unless another person can establish an interest under trust - in absence of express trust they need to demonstrate that a common intention constructive trust has arisen

60
Q

Summary of both common intention constructive trusts

A
  1. Common intention that a) individual has obtained equitable interest (sole legal owner) or b) legal owners do not hold as joint tenants but tenants in common (joint legal owner) - shown through 1) common intention express or inferred and 2) detrimental reliance
  2. Quantification - expressed, inferred or imputed
61
Q

What is proprietary estoppel? What does it enable the court to do?

A
  • An equitable doctrine enabling a person to informally acquire property (or personal) rights with the objective of preventing unconscionable conduct
  • Enables a court to modify parties’ strict legal rights
62
Q

How is proprietary estoppel different to promissory estoppel?

A

It is a cause of action; the basis of a claim, rather than being limited to a defence

63
Q

What will a successful proprietary estoppel give rise to?

A

An ‘equity’ - court determines how to satisfy equity through a broad discretion as to which remedy they use - can award the C a personal right or property right (inc a right under trust)

64
Q

What are the 2 cases in which proprietary estoppel will commonly arise?

A

1.An acquiescence case - A mistakenly believes they have a right in land owned by B, and in reliance on that belief act to their detriment in circumstances where B is aware of mistake but does not attempt to correct it/prevent them acting to detriment
2.An assurance case - B assures A that they have or will acquire a right in relation to B’s property and A acts to their detriment in reliance on that

Only considering assurance cases

65
Q

Two examples of assurance cases…

A
  1. Pascoe v Turner - C and D started living together in C’s house, C then moved out of house to live with mistress and told D ‘the house is yours’ several times - D made various repairs and redecorated the house at cost - C never transferred house to D and 3 years later initiated proceedings to recover possession of house from D - court held that C made assurance to D that house was hers and D acted to detriment = D had established an equity by way of proprietary estoppel
  2. Greasley v Cooke - wife of man who jointly inherited house cared for husband’s mentally ill sister but was not paid for services (and rest of family) - after husband’s death the family members who inherited house commenced proceedings to recover possession from D - D had established an equity by way of proprietary estoppel; was satisfied by giving her licence to occupy house rent-free for rest of her life (had been looking after family for 27 years with no pay and on faith of assurances husband had made to her)
66
Q

What are the 3 elements of a proprietary estoppel claim and what is the one notion that unifies/confirms the others?

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

Unconsionability (i.e. would be unconscionable for D to resile from assurance) confirms the other elements

67
Q

What must the assurance be?

A

A promise that C has/will acquire a right in property owned by the D

Must relate to land

E.g. can be that D will grant C an easement, but not that C will always be financially secure (as this does not relate to the land)

68
Q

How clear must the assurance be?

A

Need not be explicit - can be inferred from indirect statements, but must be ‘clear enough’ though this is hugely dependent on context

Can be based on how well C and D able to understand one another e.g. Throner v Major - a farmer of very few words gave another farmer (part of a farmer community) documents relating to assurance policies on his life and mentioned features of the farm that were only relevant to someone who would have continuing involvement with the farm

69
Q

What does it mean that the ‘reliance’ on the assurance will ultimately be a causation requirement?

A

There must be a ‘sufficient link’ between the assurance and C’s detrimental conduct

70
Q

Must the assurance be the sole cause of the conduct?

A

No - sufficient that it is a cause of that conduct

71
Q

If the C would have acted in same way if assurance had not been made, would proprietary estoppel claim fail on the reliance element?

A

Mixed case law - some cases held that it would fail but others that it is not fatal to claim

  • Taylors - installation of a life in retail premises would have happened anyway
    cf
    Wayling - working as a chef in deceased’s hotel to inherit hotel; would have done it anyway but was not fatal to claim
72
Q

What is the effect of the presumption of reliance on the burden of proof?

Is presumed that C relied on assurance if D makes it and C acts in detrimental manner

A

The burden of proof (re reliance) transfers to D; D must prove C did not rely on assurance

73
Q

Is detriment a technical concept and how should it be approached?

A
  • Not a narrow/technical concept
  • Must be approached as part of a broad inquiry re whether repudiation of an assurance is or is not unconscionable in all the circumstances
74
Q

What can be taken into account when assessing whether reliance was detrimental?

A

Coutnervailing benefits

75
Q

What does it mean that a court must determine whether conduct is detrimental on the assumption that D will dishonour the assurance?

A

Basically the court must assume D will definitely go back on assurance in deciding whether or not the effect of C’s conduct will be detrimental

E.g. B assures A that he will give him commercial farm. A does not make provision for pension because they expect to receive income-yielding farm. A has saved expense and so this is not prima facie detrimental, but once assumed that B will dishonour assurance, A’s failure to make provision is clearly detrimental as they are less well off in old age

76
Q

Aside from obvious forms of detriment - expenditure and provision of services without payment/less for market value - what else can be considered detriment?

A
  • Subdorinating one’s self to D and allowing D to make significant choices concerning C and his family e.g. how children should be educated
  • C passing up opportunities to better themselves/live a better life e.g. not pursuing educational/employment opportunities
  • Giving up a secure rented home and moving kids into house with partner after they say the kids will always have a secure home there
77
Q

In cases where C establishes assurance, reliance and detriment, why would their claim potentially not succeed? Is this likely?

A
  • If the court considers it would not be unconscionable for D to dishonour the assurance
  • In almost all cases, the 3 will usually be sufficient to establish unconscionability
78
Q

How does the court decide if it would be unconscionable for the D to dishonour the assurance?

A

Using an ‘objective value judgement’; claim only succeeds if D’s behaviour ‘shocks’ the conscience of the court

Technically do have discretion but very sparingly exercised

(As in will usually allow the claim)

79
Q

When will a claim fail for want of unconscionability?

A

E.g. Sledmore v Dalby - woman wanted her son-in-law (SIL) to vacate property after having promised they would be given the cottage along with his (now dead) wife - SIL had made substantial improvements to cottage on reliance on promise, but court held it was not unconscionable for woman to renege on promise because…

  • SIL had enjoyed rent-free accomodation for 15+ years and enjoyed benefit of his expenditure
  • SIL was making minimal use of the cottage; lived with new partner and only slept at cottage 1-2 times per week
  • SIL was employed and could pay for own accomodation
  • Woman was impecunious and in receipt of state benefits and only sought to recover possession because she was desperate (at risk of being repossessed and sold by secured creditor)
80
Q

What remedies are available for the C in a successful proprietary estoppel case?

A

Orders directing D to:

  • Transfer ownership of property to C
  • Hold property on trust for C
  • Grant C right over property (e.g. easement)
  • Grant C personal right over property (e.g. licence)
  • Pay sum of money to C
81
Q

What should the remedy generally not do? As a result, what should it do?

A

Exceed C’s expectation; court should start with assumption that simplest way to remedy unconscionability constituted by repudiation is to hold promisor to promise

  • Aim of remedy is to prevent/undo unconscionable conduct and best way to do this is to satisfy expectation
82
Q

When would fulfilment of the expectation not be an appropriate remedy?

A

Where…

  • D no longe owns property to which assurance relates
  • D reneges on the assurance years before it was due to be honoured
  • Appropriation of property to satisfy expectation would cause hardship to third parties
  • Fulfilment of expectation would be completely disproportionate to C’s detriment
  • Fulfilment to expectation would involve enforced cohabitation

Example of disproportionality: disabled 50 y/o person with no expectation of early death secures commitment by carer to look after her for rest of life on low wages on assurance the carer will inherit her mansion - if the 50 y/o dies a few months later without a will to give effect to this: compensation less the mansion would be sufficient to remedy any unconscionability (giving the mansion would be disproportionate)

83
Q

What must the court do when fulfilment of the expectation would not be an appropriate remedy?

A

Award a remedy which does justice between parties - yardstick is: if the D conferred the proposed remedy upon C, they would be acting unconscionably

So may be a monetary equivalent of what C was promised

84
Q

What can the D do if there is more than one appropriate remedy available?

A

Choose which one of those remedies should be awarded to C

85
Q

What is an acceleration case?

A

Where claim is made before assurance due to be honoured

Guest - parents promised son part of farmland after death and in reliance son worked on farm for 22 years with minimal pay - parties quarelled and son left farm - although inheritance of 40% farm after parent’s death would satisfy equity, the son wanted an immediate remedy so had to fashion a proxy for inheritance - SC provided two remedies to fulfil aim of preventing unconscionable conduct which the parents could choose between…
1. Award giving son reversionary interest in 40% of farmland subject to parent’s life interests
2. Order for immediate sale of farmland and payment to son of 40% of proceeds discounted to reflect accelerated receipt

86
Q

What is the difference between proprietary estoppel and common intention constructive trusts?

A
  • Proprietary estoppel = asserting an equitable claim against the conscience of the true owner; claim is a ‘mere equity’ to be satisfied by minimum award necessary to do justice
  • Common intention constructive trust = identifying the true beneficial owner(s) and the size of their beneficial interest
87
Q

Summary of everything

A