The team and I attended the Solidus conference this week and there was a fascinating presentation delivered by our legal friends at Mills & Reeve about the concept of Proprietary Estoppel.
Proprietary Estoppel is a fascinating legal doctrine that often comes into play when individuals are promised property rights (usually verbally, with no legal documentation in place), and then those promises are not fulfilled.
Recent cases involving proprietary estoppel highlight the evolving nature of this legal concept and its significant impact on property disputes. Importantly, there have been several cases where Proprietary Estoppel claims have been upheld, despite a Will often having been written to the contrary. As such, it is important that we understand this concept and be careful what we say and to whom as the implications can be far larger than we might think.
Proprietary Estoppel is a legal concept that protects the rights of individuals who have been given an assurance or promise regarding property and, as a result, have reasonably relied on that promise to their detriment. Essentially, if a person has relied on a promise to their disadvantage, a court may enforce their rights to receive the property in question.
There are a couple of recent cases which are worthy of mention here:
1. Gillett v Holt (2021): In this case, the claimant was promised a family farm by his father, provided he worked on it and cared for his father in his old age. When the father passed away, his will left the farm to a third party. The court found in favor of the claimant, upholding his Proprietary Estoppel claim.
2. Habberfield v Habberfield (2018): Here, a son worked on his family farm for over 30 years based on assurances from his parents that he would inherit the land. However, upon his parents’ death, the farm was left to his brother. The court ruled in favor of the son, applying the doctrine of Proprietary Estoppel.
Proprietary Estoppel claims most often arise in relation to farms and farmland, however there are several other cases surrounding several other types of assets also.
Mills & Reeve did highlight what some might say is an amusing case where a family spent in excess of £1m in legal fees arguing a Proprietary Estoppel claim over a property worth only £245,000!
Proprietary Estoppel is a powerful legal process that continues to evolve and play a significant role in many property disputes. Recent cases demonstrate the courts’ readiness to uphold promises made regarding property rights when the recipient has reasonably relied on them to their detriment.
Although not something we see frequently in client cases, the size of some of these claims does highlight the need to take care in what you say (or promise) to others.
