Trust 9 - Family homes estoppel

Question 1

What is proprietary estoppel?

Answer 1

Enables a person to informally acquire property (or personal) rights to prevent unconscionable conduct

Question 2

What are the two types of proprietary estoppel?

Answer 2

• Acquiescence
• Assurance

Question 3

What is acquiescence proprietary estoppel?

Answer 3

A mistakenly believes they have a right in land owned by B, and in reliance on that, act to their detriment where B is aware of mistake but doesn’t try to correct it

Question 4

What is Assurance proprietary estoppel?

Answer 4

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

Question 5

What are the cases on assurance proprietary estoppel

Answer 5

• had an affair and told wife “this house is yours”, she improved the house, he didn’t transfer - had an estoppel claim
• maid looked after ill sister without charge after being told she could live in house rest of life - had an estoppel claim
• brother of farmer of very few words worked on farm for no pay. Farmer never actually said brother would inherit the farm but gave life policies to pay for his IHT and gave info only relevant to owner - had an estoppel claim

Question 6

What are the requirements for proprietary estoppel?

Answer 6

• Assurance (must be clear enough, can be inferred or explicit)
• Reliance on assurance
• Detriment due to reliance
• Unconscionable for D to go back on assurance

Question 7

How is reliance shown for proprietary estoppel?

Answer 7

There must be a sufficient link between assurance and detrimental conduct, but doesn’t have to be the sole cause
Presumed reliance found where assurance made and C acts detrimentally, transferring burden of proof onto the D

Question 8

What are examples of detriment for proprietary estoppel?

Answer 8

• Expenditure,
• providing services without payment or less than market value,
• passing up opportunities,
• subordination to D

Question 9

If A makes an assurance to B and B acts to his detriment, who has the burden of proof of showing that the assurance and detriment are linked?

Answer 9

The burden shifts to A to show that B’s detriment was as a result of A’s assurance

Question 10

What remedies are there for proprietary estoppel?

Answer 10

• Transferring ownership
• Holding property on trust
• Granting C property/personal right
• Paying money

Question 11

What principles regulate exercise of court discretion over the remedy used for proprietary estoppel?

Answer 11

1. Remedy shouldn’t exceed C’s expectation
2. Court may award a remedy which satisfies C’s expectation, but not required
3. Remedy must be proportionate to C’s detriment