Hepburn v McDonnell

The case of *Hepburn v McDonnell* involved an appeal to the High Court of Australia from a decision of the Supreme Court of New South Wales. The appellant, Mr Hepburn, sought to recover a sum of money from the respondent, Ms McDonnell, representing her contribution to a debt owed to the estate of her late father, of which they were both executors. Ms McDonnell raised the defence of the Statute of Limitations, arguing that the claim was brought more than six years after the cause of action arose. Mr Hepburn contended that Ms McDonnell's written response to a letter from his solicitor constituted a sufficient acknowledgment of the debt to take it out of the statute.

The central legal issue before the High Court was whether Ms McDonnell's letter of 20 November 1916 contained an acknowledgment of the debt that was sufficient to defeat the defence of the Statute of Limitations. Specifically, the court had to determine if the letter contained an unqualified acknowledgment of the debt, from which a promise to pay could be implied, and whether any subsequent statements in the letter contradicted or qualified this implied promise.

The High Court, in allowing the appeal, reasoned that Ms McDonnell's letter contained an unconditional acknowledgment of her indebtedness to Mr Hepburn, to the extent of the sum specified in the solicitor's letter. The court applied the principles established in cases such as *Green v Humphreys* and *Cooper v Kendall*, which require an absolute and unqualified acknowledgment from which an intention to pay can be inferred. While Ms McDonnell's letter did propose a method of payment and explained her current financial difficulties, the court found that these statements did not contradict the initial acknowledgment of the debt. Instead, they were viewed as an explanation of her present inability to pay and an offer for consideration, rather than a repudiation of her liability. Therefore, the court held that there was a sufficient acknowledgment within Lord Tenterden's Act to take the claim for the specified sum out of the Statute of Limitations.