CHANCERY DIVISION
Strand, London, WC2A 2LL |
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B e f o r e :
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Richard Andrew Gordan |
Claimant |
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Roy Mitchell Marion Mitchell Derek Gordon Brenchley Garage Ltd. |
Defendants |
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Max Thorowgood (instructed by Baker Macdonald) for the Defendants
Hearing dates: 28/6/07 6/7/07
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Crown Copyright ©
Mr Justice Evans-Lombe:
The Law
(1) an assurance or representation by the Defendant that the Claimant would receive a material advantage, in this case shared control of the Garage business with his brother and an interest in the land comprising the Garage, on condition that he undertook certain actions or duties;
(2) performance by the Claimant of those actions or duties involving disadvantage or other detriment to him;
(3) such performance by the Claimant being undertaken by the Claimant in reliance on the Defendant's assurance or representation being honoured by the Defendant and that any repudiation by the Defendant of his assurance would, in all the circumstances, be unconscionable.
"The overwhelming weight of authority shows that detriment is required. But the authorities also show that it is not a narrow or technical concept. The detriment need not consist of the expenditure of money or other quantifiable financial detriment, so long as it is something substantial. The requirement must be approached as part of a broad enquiry as to whether repudiation of an assurance is or is not unconscionable in all the circumstances. There must be sufficient causal link between the assurance relied on and the detriment asserted. The issue of detriment must be judged at the moment when the person who has given the assurance seeks to go back on it. Whether the detriment is sufficiently substantial is to be tested by whether it would be unjust or inequitable to allow the assurance to be disregarded that is, again, the essential test of unconscionability. The detriment alleged must be pleaded and proved."
"Richard You told me to go. You came out and said to get out. I am not dreaming. I was dreaming was I when you said I had a share in the Garage?
Mrs Mitchell No you would have done if you'd have stayed.
Later
Richard I'm going to argue over it. I want to argue over it, I put fifteen years of my life into it and you promised me so many things, so many times.
Mrs Mitchell You should have stayed shouldn't you?
Later
Richard When we started the business you said don't worry it's all yours at the end of the day.
Mrs Mitchell It wouldn't have been all yours, it would have been shared. Derek was involved.
Richard Of course I'm not saying it would have been all mine, Derek was involved. I worked for a low wage and you said don't worry.
Mrs Mitchell We all worked for what we could afford to pay, even the other lads. You were not hard done by. You think you were.
Later
Richard All I'm trying to get across to you is you led me to believe certain things and then you came to me and you said get out.
Mrs Mitchell I am not arguing I am not carrying on this conversation any further. It's not true."
Richard's evidence
"Richard Andrew Gordon is recorded in the Admission Register of Charterhouse Boy's School as leaving the school in 1978 last attendance 5th January 1978, deleted from register 23rd March 1978. This register is in my custody. "
The note is signed by her and dated 14th June 2006.
"Our client is bemused by the handwritten letter from the archivist dated 14th June 2006. He instructs us that consequently he visited Bromley Borough Council and he can find nothing to back up the claims of the archivist that he last attended school on 5th January 1978. Have you yourselves personally or have your clients personally seen anything which might remotely approach the status of "evidence" that our client last attended school on 5th January 1978? Evidently Elizabeth Silverthorne has confirmed to our client that there are no daily attendance records available whatsoever. For our part we find a conflict in the assertion that our client's last attendance was 5th January 1978 when it is put to us in your letter dated 23rd July 2003 that "the outcome of this was that your client left school in Easter 1978 rather than commuting from Paddock Wood to Orpington each day until July." At the very least the Elizabeth Silverthorne letter suggests that our client attended for one or two days at the start of the Spring term of 1978 and then never went back compared to the assertion by your clients that our client certainly spent the whole Easter/Spring term 1978 at school. "
1. Richard's suggestion that he might join the army. I accept the Mitchells' evidence that this had progressed further than mere consideration of the idea.
2. The offer by Mr Mitchell of £50,000 in the event that the proposed purchase of the Garage business for £600,000 proceeded. On no view did £50,000 represent the value of Richard's promised share even if, as I accept, the offer was at £450,000, subsequently reduced, as was Mr Mitchell's evidence. Richard gave no evidence that he reacted in any way to the fact that he was being offered £50,000 to buy out his promised share.
3. Richard leaving the business in 1991 to go and work for the RAC. Notwithstanding his representation in the course of the recorded conversation with his mother that he was "pushed out", Richard gave no evidence that he was dismissed in 1991. He accepted that he left the Garage business of his own volition with the promise that he could return to it within six months if the RAC job proved unsatisfactory. There was no suggestion in evidence of any agreement or understanding between him and the Mitchells that their assurances remained binding notwithstanding that he was leaving the Garage business for higher wages elsewhere.
All these events are inconsistent with Richard conducting his life in reliance on his having received from his stepfather, either directly or through his mother, assurances of a kind which he alleges. It follows that Richard has failed to establish the first requirement of a case of proprietary estoppel.