Proprietary Estoppel

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Summary

Where domestic property is jointly acquired (e.g. by a couple) a claim of common intention constructive trust and proprietary estoppel may arise on the same facts.

  • In other words, where there is an express statement by the legal owner that the non-legal owner would have a proprietary interest in the property, this is both a representation, for the purposes of proprietary estoppel; and evidence of a common intention for the purposes of establishing a constructive trust.
  • If the non-owning party suffers detriment in reliance on this express statement, which is a requirement of both the common intention constructive trust and of proprietary estoppel, then both claims may be pleaded on the same facts.

In Grant v. Edwards [1986], Sir Nicolas Browne-Wilkinson VC noted that the two doctrines rested on the same foundations and that they should develop together; and in Yaxley v Gotts [2000] Walker LJ endorsed this approach. However, in Stack v Dowden [2007], Lord Walker described himself as 'rather less enthusiastic' that the two doctrines should be assimilated.

*Exam tip*

Note that estoppel is an example of equity: this means that there is a good deal of discretion in this area and it is unwise to come to a black-and-white conclusion.

Some other helpful legal resources on proprietary estoppel:

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