At Sydney Mitchell, we understand the delicate balance between maintaining family trust and protecting individual interests, particularly when it comes to proprietary estoppel claims.
Our Contentious Probate team is experienced in handling proprietary estoppel cases involving property, land and family businesses. We strive to resolve these sensitive issues with care and professionalism, ensuring that our clients rights are protected while endeavoring to maintain family relationships as far as possible.
When could proprietary estoppel apply?
While it is common in the commercial world to document agreements in writing, those formalities are often absent in family circumstances, where trust is assumed to be implicit. However, this lack of documentation can lead to disputes, especially if promises regarding property or inheritance are made but not fulfilled.
For proprietary estoppel to apply, four main elements must generally be present:
Representation or assurance
A clear representation or promise must have been made to the claimant. This assurance could be explicit or implied, but it must be sufficiently clear to form the basis of the claimant’s expectations.
Reliance
The claimant must have relied on the representation or assurance given. This reliance must be reasonable, meaning that the claimant genuinely believed the promise and acted upon it.
Detriment
Finally, the claimant must have suffered a detriment as a result of their reliance on the promise. This detriment often manifests as a loss or disadvantage that the claimant has suffered because they acted on the belief that they would receive what was promised.
Unconscionability
The court must consider that withholding what was promised to the claimant is unfair and is unjust enough to require the court’s intervention.
An example
Proprietary estoppel is frequently invoked in cases involving property or land disputes. For instance, it may arise when an individual has been led to believe they will receive an interest in a property or parcel of land and has undertaken significant action, for example, investing time, money, or resources based on that belief.
In such scenarios, proprietary estoppel acts as a remedy to ensure that the party who relied on the promise is not unfairly disadvantaged when the promising party attempts to go back on their assurance.
Find out more about the team
