BUSINESS AND PROPERTY COURTS IN LEEDS
PROPERTY TRUST & PROBATE LIST (ChD)
BEFORE:
B e f o r e :
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MR MATTHEW WILLS MR JAMES WILLS |
Claimants |
|
- and – MISS CLAIRE LOUISE SOWRAY (AS BENEFICIARY AND PERSONAL REPRESENTATIVE OF THE ESTATE OF THE LATE ANTHONY SOWRAY DECEASED) |
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Date handed down: 15 April 2020
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Introduction
The pleaded case
(1) Particulars of Claim
(2) Defence
(3) Reply
Trial and trial bundles
The party's skeleton arguments
(1) The Claimants
(2) The Defendant
Parties closings
Background facts from the record
(1) Gilmoor Farm
(2) Tony
(3) Claire
(4) Matthew and James
In view of the fact that there are no records concerning Matthew and James I consider it better to address them on the basis of their cases below. I also deal with their separate cases in an analytical way because that is how their evidence has been challenged during the course of this trial and then summarise their position in the round when considering the appropriate relief to grant in this particular case.
The law
(1) deciding whether an equity has been raised and if so how to satisfy it is a retrospective exercise looking backwards from the moment when the promise falls due to be performed and asking whether in the circumstances which have actually happened it would be unconscionable for the promise not to be kept either wholly or in part (Thorner),(2) the ingredients necessary to raise an equity are (a) an assurance (b) sufficient reliance by the claimant on that assurance and (c) detriment the claimant in consequence of his reasonable reliance (Thorner)
(3) however no claim based on proprietary estoppel can be divided into watertight compartments. The quality of the relevant assurances may influence the issue of reliance; reliance on detriment are often intertwined and whether there is a distinct need for a "mutual understanding" may depend on how the other elements are formulated and understood (Gillett) but also Henry v Henry[2010] UKPC3,
(4) 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 broader enquiry as to whether repudiation of an assurance is or is not unconscionable in all the circumstances (Gillett) but also Henry (supra)
(5) there must be a 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 has given the assurance seeks to go back on it. The question is whether (and if so to what extent) it would be unjust or inequitable to allow the person who has given the assurance to go back on it. The essential test is that of unconscionability (Gillett)
(6) thus the essence of the doctrine of proprietary estoppel is to do what is necessary to avoid an unconscionable result (Jennings)
(7) in deciding how to satisfy any equity the court must weigh the detriment suffered by the claimant in reliance on the defendant's assurances against any countervailing benefits he enjoyed in consequence of that reliance (Henry). (This is the only one of the nine matters which does not rely upon Lord Walker.)
(8) proportionality lies at the heart of the doctrinal proprietary estoppel and permeates its every application (Henry). In particular there must be a proportionality between the remedy and the detriment which is its purpose to avoid (Jennings). This does not mean that the court should abandon expectations and seek only to compensate detrimental reliance but if the expectation is disproportionate to the detriment the court should satisfy the equity in a more limited way (Jennings)
(9) in deciding how to satisfy the equity the court has to exercise a broad judgemental discretion (Jennings). However the discretion is not unfettered. It must be exercised on a principled basis and does not entail what HH Judge Weeks QC memorably called a "portable palm tree"; Taylor v Dickens[1998] 1 FLR 806 (a decision criticised for other reasons in Gillett)
Matthew's case
(1)Representation or assurance made to Matthew
(2) Reliance by Matthew
(3) Detriment to Matthew
James's case
(1) Agreement, representation or assurance made to James
(2) Reliance by James
(3) Detriment to James
Matthew and James's previous solicitors' assertion of a tenancy
"then he said you can rent it. We have never paid rent.Peppercorn?
You and your brother can stay on the land for the rest of your life.
He told Matthew.
He told James 6/7 years ago. He said to the boundary is your land. Fenced off area put… transplanted trees. He helped and do it."
Complaints to friends that Matthew and James had not paid the rent
Claire's case
(1) Tony farming and not Matthew
(3) Tony's intentions for Gilmoor Farm
Marianne Everett who gave evidence shortly at 3:40 pm is a close friend of Claire over many years since that initial teacher training in September 2005. Though her witness statement summarises the position as "I was never in any doubt of the mutual love and affection between father daughter and granddaughter" (paragraph 7) and records conversation since 2005 with Claire, it appears that Claire never mentioned that Tony had said she would inherit Gilmoor Farm. When she gave oral evidence, I have no doubt she was doing her very best to give straightforward evidence but it does not assist on this issue and I do find it surprising that as close friends she and Claire apparently never discussed Claire's inheritance of the farm onTony's death.
( paragraph 31) Reading Claires statement as a whole it is clear that Claire did not often go to Gilmoor Farm even after she learned to drive in 2010 and certainly never after 2015 until Tony's death in 2017 and she had therefore little or no opportunity to see Matthew or James.
Summary of Claire's defence to Matthew and James's claim for proprietary estoppel
Relief
The effect of section 2 Law of Property (Miscellaneous Provisions) Act 1989 on James's case
(1) James's relief
(2) Matthew's relief
Conclusions