Latest developments in
proprietary estoppel
Alex Troup
Barrister
St John’s Chambers
Wills, Trust & Tax Team
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Latest Developments in Proprietary Estoppel: Representation, Detriment, and Remedies, Lecture notes of Accounting
The latest legal developments in proprietary estoppel, a doctrine used to enforce promises or representations made by one party to another, even if there is no formal contract. the basic principles of proprietary estoppel, including representation, reliance, detriment, and unconscionability. It also explores case law on the representation ingredient, the unanimity principle for trustees, and the non-fettering principle. The document concludes with a discussion on the determination of detriment and the court's aim in proprietary estoppel cases.
Typology: Lecture notes
2021/2022
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Latest developments in
proprietary estoppel
Alex Troup Barrister St John’s Chambers
Wills, Trust & Tax Team
Basic principles
3 main ingredients: representation; reliance; detriment Unconscionability Wide discretion in satisfying the equity
The unanimity principle
Unless provided to the contrary in the trust instrument, trustees must act unanimously Need to plead agency?
“Elementary fairness requires that before a person can be bound by the acts of another purporting to act on his behalf, that other must have authority to bind him in the matter. Whether he has will depend on the usual principles of agency. This applies, in my judgment, as much in the field of estoppel as it does in other contexts.”
Tentative conclusion
Principle does not defeat proprietary estoppel claim because of flexibility of remedy In any event a novel point not suitable for strike out
Detriment
Davies v. Davies [2014] EWCA Civ 568 The “Cowshed Cinderella” case Preliminary issue hearing!
Detriment is not purely financial
“The judge had to determine whether there was substantial detriment by contrasting the rewards of the job at Genus with its better lifestyle with those of working on the farm (including the free accommodation ... ) with its greater burdens in terms of working hours and more difficult working relationships”
Detriment (again)
Southwell v. Blackburn [2014] EWCA Civ 1347 Detriment not counterbalanced by rent free accommodation
“arithmetical accounting exercise”
not appropriate in quasi- matrimonial case
Essential feature of the Davies case
“…a series of different (and sometimes mutually incompatible) expectations, some of which were repudiated by Eirian herself, others of which were superseded by later expectations”
What is the court’s aim?
Satisfying expectation or compensating detriment? “Logically, there is much to be said for the second approach” ”Fortunately, I do not think that we need to resolve this controversy on this appeal”
The calculation of £500K
Accommodation £180K Partnership element £22K Company element £120K Underpaid wages £28K “modest” amount for disappointment “modest” amount for giving up ability to work shorter hours in better working environment
What next?
Permission sought for appeal to the Supreme Court