Proprietary Estoppel: The Golden Ticket To The Family Farm?

In our last edition we reported on the latest estoppel case, Habberfield v Habberfield [2018]] where a daughter inherited her parent's farm. In the space of only 3 months two more farming estoppels cases have hit the press: Thompson v Thompson [2018] and Gee v Gee [2018]. These cases demonstrate the Court's broad discretion when deciding how to satisfy the equity and the Court's preparedness to award the entirety of a family farm to a child.

Estoppel elements

To bring a successful proprietary estoppel claim the following elements must be established:-

A representation or assurance has been made to the Claimant, raising the reasonable expectation that he/she will be given an interest in land; The Claimant relies on the representation or assurance; The Claimant suffers detriment in consequence of their (reasonable) reliance on the representation or assurance; and It would be unconscionable for the promise-giver to resile from the promises or representations made. Thompson v Thompson

Mr and Mrs Thompson acquired Woody Close Farm ("the Farm") in County Durham in 1989. It comprised a farmhouse, bungalow, outbuildings, 115 acres of owned land together with 120 acres of tenanted land.

The Claimant, Gilbert Thompson ("Gilbert"), is the youngest of 5 children and the only son. He farmed with his father since finishing school, aged 15, working full time 7 days a week, and at times, up to 18 hours a day. He was paid £20 a week, increasing to £40, when he was 19 or 20 and then later to £70. He also received free board and lodgings. By 1989, Gilbert's sisters had all left home.

In 1994 Mr Thompson brought Mrs Thompson and Gilbert into the business, creating a partnership, where they each held 1/3 shares (with effect from 1 August 1992). A written agreement was completed, under which Gilbert was required to devote his full time and attention to the business, whereas his parents had discretion as to how much time and attention they devoted.

Mr and Mrs Thompson lived in the bungalow. Gilbert lived there most of his life, moving out permanently in 2003, before moving to the farmhouse in 2013. In 1992 the bungalow was transferred into Mrs Thompson's name.

The Farm, excluding the bungalow, was shown in the accounts as an asset of the Partnership.

On the death of Mr Gilbert in 2012 his partnership interest passed to Mrs Thompson. In 2014 relations broke down between Gilbert and his mother. Gilbert moved out of the Farmhouse. There was a difference of opinion...