Anjali Narshi, contentious probate specialist at law firm Lodders, explains what proprietary estoppel is and shares some recent cases regarding this legal doctrine.
What is proprietary estoppel?
Proprietary estoppel is a legal remedy that can be used to stop a person from going back on earlier verbal promises to transfer property or land to another person. It is commonly used in domestic contexts and often for estate disputes, such as when a landowner goes back on their earlier promise for an individual to inherit their property.
There are three requirements that need to be met in order to succeed in claiming proprietary estoppel, these are:
- A promise or assurance – this can be either explicitly or implicitly made to the claimant by another and suggests that the claimant has an interest in the property.
- A reliance – the claimant must have relied on the promise or assurance, and this must cause them to act in a way that they would not have previously.
- A detriment – the claimant must have suffered a detriment as a result of their reliance on the promise or assurance; this does not have to be a financial detriment.
The court will consider all three of these requirements, and the claimant must also prove that it is unreasonable for this verbal promise to have been broken.
How to protect your estate from proprietary estoppel claims
As proprietary estoppel claims are verbal promises, and therefore not physically documented, the most sensible way to protect yourself from these claims is by not making promises or creating expectations for a deal you do not intend to fulfil.
Preparing a will can also help to protect your estate as it can be used to clearly demonstrate who you want to be a beneficiary. Further protection and clarification can also be provided by writing an accompanying letter of wishes to clearly explain these decisions and your desired outcome.
Recent proprietary estoppel cases
Winter vs Winter (2024)
The case of Winter vs Winter saw Richard Winter, one of three brothers working on their parents’ multi-million-pound strawberry farming business, bring a proprietary estoppel claim against his father’s estate. Richard had been written out of his father’s will after a disagreement and so the business was left to just one of the three brothers, Phillip. Richard claimed that his father had promised that he would inherit one-third of his father’s share in the business, and because of this, Richard had decided to put aside his ambition to join the Royal Marines and work in the family business.
The High Court accepted Richard’s claim and ordered that he should be provided with his share of the family business. His brother Phillip appealed the case and argued that Richard has not suffered any detriment as he had made more money working for the farm than he would have as in the military. As the detriment does not always have to be financial, the court upheld Richard’s claim and stated that committing to working for the family business for his entire life was still considered a detriment.
Teasdale vs Carter (2023)
Described by a High Judge as “one of the most regrettable pieces of litigation” they had ever come across, the case of Teasdale vs Carter saw that during Mr and Mrs Teasdale’s divorce, their daughter Rebecca had claimed a property on the family farm was hers by virtue of proprietary estoppel.
Rebecca’s claim was founded on both expenditure and labour on the home as well as promises from her father that this would be her forever home. While her mother was aware of these promises, she argued that the money Rebecca had put into the property amounted to no more than putting ‘her stamp’ on it as a tenant rather than someone who would inherit the house. Despite her mother’s appeals, Rebecca was given the property after paying the mortgage and her mother was ordered to pay associated legal costs. The legal costs far exceeded the value of the property, and the family relationship was further damaged, making this a regrettable case.
Importance of preparing a will
Proprietary estoppel cases highlight the importance of succession planning and preparing a will to ensure there is no confusion as to who your estate should be passed on to.
Lodders is a premier law firm in Stratford upon Avon, Birmingham, Cheltenham, and Henley in Arden. Founded more than 240 years ago, the firm offers expert legal advice across a range of legal services including private client, commercial law, real estate, and family law.
For more information, visit: www.lodders.co.uk
