Proprietary Estoppe Flashcards
What is Proprietary Estoppel?
A cause of action which gives right to ‘an equity’.
Court determines how to satisfy the equity.
When does Proprietary Estoppel occur?
Occurs when B assures A that they have or will acquire a right in relation to B’s property and, in reliance on that assurance, A acts to their detriment.
What are the main elements of Proprietary Estoppel?
- An assurance made to the claimant.
- Reliance by the claimant on the assurance.
- Detrimental conduct by the claimant.
- Unconscionability
What is required for the assurance made to the claimant?
Must be an assurance that the claimant has or will acquire a right in property owned by the defendant.
Assurance need not be explicit but can be inferred from indirect statements.
How should the assurance be understood?
Need to ascertain how the defendant’s words would have been understood by the claimant in the context in which they were spoken.
What does reliance by the claimant on the assurance entail?
Must be a ‘sufficient link’ between the defendant’s assurance and the claimant’s detrimental conduct – essentially causation.
Does the assurance have to be the only cause of the claimant’s conduct?
No, the assurance does not have to be the only cause of their conduct.
Reference case: Wayling v Jones.
What happens if the defendant acts to their detriment based on an assurance?
The burden of proof is shifted to the prosecution to show there was no reliance.
What is the detriment to the claimant in proprietary estoppel?
Broad concept, includes:
- expenditure
- the provision of services without fee or payment for less than their market value
- if they pass up opportunities to better themselves or to live a better life
How is unconscionability determined?
It is an objective value judgment by the court of the defendant’s behaviour - it must shock the conscience of the court
Cobbe
Can a claim for proprietary estoppel be denied even if reliance, assurance, and detriment are proven?
Yes, theoretically it could be denied, but in practice, this rarely happens.
What does establishing a proprietary estoppel generate for the claimant?
It generates an ‘equity’ which requires a remedy.
What are some remedies available for a claimant in proprietary estoppel?
- Transfer ownership of property to claimant
- Hold property on trust for the claimant
- Grant the claimant a property right over their property (an easement)
- Grant the claimant a personal right over their property (a licence)
- Pay a sum of money to the claimant
What principles guide the formation of a remedy in proprietary estoppel?
- The remedy should not exceed the claimant’s expectation
- The court may award a remedy which satisfy the claimant’s expectations but it is not required to do so
- Remedy must be proportionate to the claimant’s detriment
How is the statement of ownership different in CICT and PE?
PE - legal owner makes a promise at any time before the detriment of the claimant
CICT - verbal discussions to share before or at the time of purchase (unless ambulatory)
