Proprietary estoppel
Proprietary estoppel is a flexible equitable doctrine used to prevent unfairness where someone has relied on a promise relating to property.
The legal test
A claimant must generally show:
- a clear assurance or promise
- reliance on that assurance
- detriment suffered as a result
- that it would be unconscionable to deny relief
When does proprietary estoppel arise?
Common scenarios in which proprietary estoppel claims arise include:
- family members promised property
- farming succession arrangements
- informal inheritance promises
- long-term unpaid work or contributions
Remedies and outcomes
While the court has discretion as to how much to award, a recent series of cases have confirmed that the court should look to satisfy the equity or injustice insofar as possible. This usually begins with seeking to meet the expectation. However, where the expectation far exceeds any detriment actually suffered (whether financial or otherwise), then the court will usually look to award an amount to meet the detriment or perceived injustice.
Ultimately, the court aims to satisfy the equity and may tailor the remedy to the facts of the case.