Guest v Guest
The starting point for the remedy in proprietary estoppel is to fulfil the claimant's expectation, adjusted for factors such as the acceleration of the benefit.
Facts
Andrew Guest worked on his parents' dairy farm for more than 30 years, for low wages, relying on their repeated assurances that he would inherit a substantial share of the farm. After a family dispute, his parents changed their wills to disinherit him, and he left the farm. The trial judge held that a proprietary estoppel had arisen and ordered the parents to pay him a large lump sum immediately, representing the value of his expected share. The parents, who were still alive, argued that this gave him more than he had been promised, because he would receive the benefit long before he would otherwise have inherited.
Legal principle
The Supreme Court, by a majority of three to two, held that the remedy should be adjusted. Lord Briggs said that the aim of the remedy is to prevent or remedy the detriment caused by the promisor going back on his promise, and that the natural starting point is to hold the promisor to his promise, by fulfilling the expectation. The court must then check whether that would be out of all proportion to the detriment, and must allow for the acceleration of the benefit if the claimant is to receive it during the promisor's lifetime. Andrew was given a choice between a trust that would give him his share on his parents' deaths, and an immediate payment discounted for early receipt. Lord Leggatt and Lord Stephens dissented, preferring a remedy that compensated for the detriment.
Related cases on contracts for land and proprietary estoppel
- Cobbe v Yeoman's Row Management Ltd [2008] UKHL 55, [2008] 1 WLR 1752
- Crabb v Arun District Council [1976] Ch 179
- Davies v Davies [2016] EWCA Civ 463
- Dillwyn v Llewelyn (1862) 4 De GF & J 517
- Firstpost Homes Ltd v Johnson [1995] 1 WLR 1567
- Gillett v Holt [2001] Ch 210
- Habberfield v Habberfield [2019] EWCA Civ 890
- Inwards v Baker [1965] 2 QB 29
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This summary is for study and revision and is not legal advice. Although our case summaries are checked for accuracy, we do not guarantee that they are free from errors or omissions. Always read the full judgment for the court's reasoning.
